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Purchases of new U.S. single-family homes rose in June to the highest level in more than eight years, indicating a firm and resilient housing market.
Sales increased 3.5 percent to a 592,000 annualized pace, the fastest since February 2008, Commerce Department data showed Tuesday in Washington. Figures for May were revised higher. The median forecast in a Bloomberg survey called for a 560,000 rate.
While the government’s new-home purchase data are subject to big swings from month to month, the broader picture for residential real estate shows steady gains fueled by stable employment and low borrowing costs. Faster wage growth and construction of properties priced for entry-level buyers have the potential of further stoking the market.
“The grinding recovery continues,” said Brett Ryan, a U.S. economist at Deutsche Bank Securities Inc. in New York. “The fundamental underpinnings are still really supportive for housing, so it should be a steady contributor to growth over the next year or so.”
U.S. home prices extended their steady upward march in May, spurred by rising sales and a dwindling supply of available houses.
The Standard & Poor's CoreLogic Case-Shiller 20-city home price index increased 5.2 percent in May compared with a year ago. That is down from a 5.4 percent annual gain in April but still above last summer's growth rate.
Solid job growth and near-record low mortgage rates are spurring more Americans to buy homes. Yet higher prices haven't encouraged more people to list their properties for sale. That is forcing buyers to compete against each other and bid up prices, particularly in coastal cities with strong job growth.
"Sellers are in the driver's seat, as buyers contend with fierce competition and very fast-moving markets," Svenja Gudell, chief economist at real estate data provider Zillow, said.
Home prices are slowly edging back
This would be good news if there were economic growth driving new construction. What you are seeing is construction catching up with supply that as the economic bad times created a shortage of supply of housing units following years of surplus.
This would be good news if there were economic growth driving new construction. What you are seeing is construction catching up with supply that as the economic bad times created a shortage of supply of housing units following years of surplus.
So what you are saying is the demand was outstripping supply that has now expanded...again how is that not a good thing?
Bad would have been continued low demand and as result continued low supply.
This would be good news if there were economic growth driving new construction. What you are seeing is construction catching up with supply that as the economic bad times created a shortage of supply of housing units following years of surplus.
So what you are saying is the demand was outstripping supply that has now expanded...again how is that not a good thing?
Bad would have been continued low demand and as result continued low supply.
We were over producing housing units during the bubble. Housing units then fell after the bubble and the demand grew naturally, which builders are now starting to fill the gap. I did not say it was not a good thing. It just isn't a good indicator of an economic growth. It is an indicator that people are tired of living in their mom's basement.
This would be good news if there were economic growth driving new construction. What you are seeing is construction catching up with supply that as the economic bad times created a shortage of supply of housing units following years of surplus.
So what you are saying is the demand was outstripping supply that has now expanded...again how is that not a good thing?
Bad would have been continued low demand and as result continued low supply.
We were over producing housing units during the bubble. Housing units then fell after the bubble and the demand grew naturally, which builders are now starting to fill the gap. I did not say it was not a good thing. It just isn't a good indicator of an economic growth. It is an indicator that people are tired of living in their mom's basement.
I don't understand how you are separating "demand grew naturally" for the real estate from the general economic growth.
U.S. Homeownership Rate Falls to Five-Decade Low
The U.S. homeownership rate fell to the lowest level in more than 50 years in the second quarter of 2016, a reflection of the lingering effects of the housing bust, financial hurdles to buying and shifting demographics across the country.
But the bigger picture also suggests more Americans are gaining the confidence to strike out on their own, albeit as renters rather than buyers.
The homeownership rate, the proportion of households that are owner-occupied, fell to 62.9%, half a percentage point lower than the second quarter of 2015 and 0.6 percentage point lower than the first quarter 2016, the Census Bureau said on Thursday. That was the lowest figure since 1965.
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Go figure.
Since the Republican recession they try to blame on ol' Barney Frank.New-Home Sales in U.S. Jump to Highest Level Since February 2008
Source: Bloomberg via Chicago Tribune
Purchases of new U.S. single-family homes rose in June to the highest level in more than eight years, indicating a firm and resilient housing market.
Sales increased 3.5 percent to a 592,000 annualized pace, the fastest since February 2008, Commerce Department data showed Tuesday in Washington. Figures for May were revised higher. The median forecast in a Bloomberg survey called for a 560,000 rate.
While the government’s new-home purchase data are subject to big swings from month to month, the broader picture for residential real estate shows steady gains fueled by stable employment and low borrowing costs. Faster wage growth and construction of properties priced for entry-level buyers have the potential of further stoking the market.
“The grinding recovery continues,” said Brett Ryan, a U.S. economist at Deutsche Bank Securities Inc. in New York. “The fundamental underpinnings are still really supportive for housing, so it should be a steady contributor to growth over the next year or so.”
Read more: New-Home Sales in U.S. Jump to Highest Level Since February 2008
Obama did a good job. thank you sir.
Since the Republican recession they try to blame on ol' Barney Frank.New-Home Sales in U.S. Jump to Highest Level Since February 2008
Source: Bloomberg via Chicago Tribune
Purchases of new U.S. single-family homes rose in June to the highest level in more than eight years, indicating a firm and resilient housing market.
Sales increased 3.5 percent to a 592,000 annualized pace, the fastest since February 2008, Commerce Department data showed Tuesday in Washington. Figures for May were revised higher. The median forecast in a Bloomberg survey called for a 560,000 rate.
While the government’s new-home purchase data are subject to big swings from month to month, the broader picture for residential real estate shows steady gains fueled by stable employment and low borrowing costs. Faster wage growth and construction of properties priced for entry-level buyers have the potential of further stoking the market.
“The grinding recovery continues,” said Brett Ryan, a U.S. economist at Deutsche Bank Securities Inc. in New York. “The fundamental underpinnings are still really supportive for housing, so it should be a steady contributor to growth over the next year or so.”
Read more: New-Home Sales in U.S. Jump to Highest Level Since February 2008
Obama did a good job. thank you sir.
