Housing Market Snapshot -------------------------------------------------------------------------------- According to the National Association of Realtors®, the national median existing-home price for all housing types was $214,200 in June, up 13.5% from June 2012. This marks 16 consecutive months of year-over-year price increases, which last occurred from February 2005 to May 2006. Helping fuel the price increase in existing home sales is an ongoing decline in sales of distressed homes, which typically sell at a reduced price, putting a damper on price increases. Sales of distressed homes (e.g., foreclosures and short sales) made up 15% of homes sales in June (compared to 18% in May) and 26% from June 2012. In fact, sales of distressed homes are at their lowest level since monthly tracking began in October 2008. Builder confidence has improved considerably. Recently, the housing market index (HMI) posted its third consecutive monthly gain and its strongest reading since January 2006. All three HMI components posted gains in July. The component gauging current sales conditions rose five points to 60. Sales expectations in the next six months increased seven points to 67 and the component gauging traffic of prospective buyers gained five points to 45, the strongest readings for each since late 2005. An index reading above 50 indicates positive sentiment about the housing market. "Builders are seeing more motivated buyers coming through their doors as the inventory of existing homes for sale continues to tighten," said David Crowe, Chief Economist for the National Association of Home Builders. "Meanwhile, as the infrastructure that supplies home building returns, some previously skyrocketing building material costs have begun to soften." In the big picture, momentum in the housing market remains an economic bright spot. Demand is up, supply is down and housing affordability remains strong. Even with the recent increase in interest rates, buying is 37% cheaper than renting nationally.
Posted on: Mon, 05 Aug 2013 17:47:52 +0000
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