Consumer & Builder Confidence Grows In May.
The National Association of Realtors reported this week in real estate that consumer optimism in selling jumped 9% in the second quarter compared to the first quarter as sales surged in May, closing the adjusted annual rate of sales to just 1.1 percent behind same time period last year. Below are a few highlights from the third week of June that influence our business:
Existing Home Sales and Inventory Bouncing Back – Prices Too.
Existing home sales broke out of a two-month slump in May, rising by 2.5 percent compared to April and beating, by a considerable margin, analysts’ consensus expectations. The National Association of Realtors said sales of single-family homes, townhomes, condominiums, and co-ops were at a seasonally adjusted annual rate of 5.34 million units compared to 5.19 million the previous month. The surge in sales however was not enough to bring sales up to the 5.40 million pace of the previous May; the shortfall was 1.1 percent. All four regions saw gains, with an especially strong one in the Northeast. Single-family home sales rose to an annual rate of 4.75 million in May from 4.63 million the prior month but were still down 0.8 percent from last May’s 4.79 million sales rate. Condo and co-op sales were up 1.7 percent to 590,000 units but were 3.3 percent lower than in May 2018. Home prices are continuing to increase. The median existing-home price for all housing types in May was $277,700, up 4.8% from $265,100 a year earlier and the 87th straight month of year-over-year gains. The median existing single-family home price was $280,200, representing 4.6 percent appreciation, and the median existing condo price gained 5.4 percent to $257,100. “The month of May ushered in the home sales upswing that we had been expecting,” said NAR President John Smaby. “Sales are strengthening in all regions while we see price appreciation for recent buyers.” Existing-home sales in the West grew 1.8 percent to an annual rate of 1.13 million in May and were 3.4 percent lower than a year earlier. The median price was $409,100, up 4.1 percent from May 2018. Full Story…
HOME Survey: More Say Now is a Good Time to Sell a Home.
The latest consumer findings from a National Association of Realtors survey reveal that many more Americans believe that now is a good time to sell a home. The second quarter of 2019 saw a jump in optimism in selling, as 46% strongly held that belief, up from 37% in the first quarter. NAR’s chief economist Lawrence Yun notes that home prices have increased only moderately and says that is a contributing factor as to why the overwhelming majority feel that now is a good time to sell. An increased number of Americans also think that now is a good time to buy a home, and of those respondents, 38% answered that they strongly believe that notion, and 27% said they moderately believe the present is a good time to buy. Thirty-five percent disagreed, stating that now is not a good time to make a home purchase, which is unchanged from 2019’s first quarter. Yun said that mortgage affordability was promising over the second quarter, and he predicts this trend will continue. “Lower mortgage rates, along with job and wage growth, will lead to an increase in sales and thereby contribute positively to economic growth in the upcoming quarters.” Full Story…
Builder Confidence Solid in June Amidst Growing Economic Uncertainty.
Builder confidence in the market for newly-built single-family homes fell two points to 64 in June, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Sentiment levels have held at a solid range in the low- to mid-60s for the past five months. While demand for single-family homes remains sound, builders continue to report rising development and construction costs, with some additional concerns over trade issues. All the HMI indices inched lower in June. The index measuring current sales conditions fell one point to 71, the component gauging expectations in the next six months moved two points lower to 70 and the metric charting buyer traffic dropped one point to 48. Looking at the three-month moving averages for regional HMI scores, the Northeast posted a three-point gain to 60 and the Midwest was also up three points to 57. The West held steady at 71 and the South fell a single point to 67. Full Story…
Originally compiled & posted by Jason Waugh on the Berkshire Hathaway HomeServices Northwest Real Estate company blog.
