The recent Existing Home Sales release published showed a 5th consecutive month of home prices higher than a year ago. What does this mean for affordability? The answer may surprise you.
Several housing indicators in recent months are all revealing something that buyers and sellers can no longer deny: Home prices are rising in most markets.
The rebounding market has economists predicting that housing will likely add to economic growth this year for the first time in seven years.
The typical amount of time it takes to sell a home is shrinking, and for traditional sellers is now in the range of historic norms for a balanced market.
NAR Chief Economist Lawrence Yun talks about pending home sales in July, 2012, which rose to the highest level in over two years and remain well above year-ago levels.
Pending home sales rose in July to the highest level in over two years and remain well above year-ago levels.
- Case Shiller data showed the first annual increase in June while other data series show a continued 4 to 5 months of annual increases.
- NAR data for July show the typical end of summer slowdown as prices dipped somewhat from June.
- New home prices continue to fluctuate greatly due to low levels of construction and purchase activity; presently new home prices show some weakness.
- Distressed sales, which hold back existing home prices
Positive underlying fundamentals continue to support all of the major commercial real estate sectors, but a slowdown in job creation and ongoing tight loan availability has tempered growth in some areas.
While sales of newly built single-family homes is on the rise, buyers are finding much fewer choices as inventory sinks to a new record low.
With ultra-low mortgage rates and high affordability, first-time home buyers may never have a better time to jump into the housing market. So why aren't there more of them?