The housing market is comprised of buyers and sellers of homes. Information on the housing market encompasses the supply and demand for homes as well as the inventory level of unsold homes. In markets around the country and different nations, you will have a natural progression of demand and supply. In some markets, there are new citizens moving to the city creating demand and, unless there is enough supply to match this demand, prices will rise. Income levels and mortgage rates also play a role in determining how many transactions occur in any given housing market.
The U.S. housing market has been on a steady rise since interest rates fell to record lows coming out of the Great Recession in 2008. With interest rates and mortgage rates continuing to be relatively low, and with the jobs market producing over 200,000 new jobs monthly, the ingredients are there for continued strength in the housing market.
Two of the most watched metrics in the housing market, Housing Starts and Building Permits, continue to be fairly strong, with over one billion annualized units for each segment.
While there is some stalling, the housing market will hold steady until mortgage rates begin to move higher; this could occur in 2015, when interest rates are estimated to rise.
The National Association of Realtors’ Housing Affordability Index has dropped 12% in the first five months of 2015. (Source: National Association of Realtors, last accessed July 16, 2015.)In January, the qualifying income to get a mortgage for an existing median-priced home in the U.S. was $36,576. In May, buying a median-priced. Read More
One of the nation’s largest home builders crushed market expectations on Wednesday June 24th, signalling that a housing recovery may be here at long last.Lennar Corp. (NYSE/LEN) posted strong second-quarter earnings of $0.79 per share, up from $0.61 during the same period last year. Revenue growth skyrocketed 46% to $2.4 billion. Read More
If you live in one of the top 20 metropolitan areas of the country, you have probably already witnessed a strong appreciation in your house’s value over the past several years. Based on my economic outlook for 2015, I believe there could be more to come for homeowners.If you happen to own property in San Francisco or New York, you know the. Read More
In the month of May, the purchase of new homes in the U.S. reached its highest level in the last seven years, signaling that the housing market is recovering.Sales of new single-family houses beat analysts’ forecasts, up 2.2% during the month of May. Stronger employment and higher disposable income were credited for the rise. (Source:. Read More
Home prices rose to a six-year high last month, signaling the U.S. housing recovery is starting to pick up momentum.Existing home sales came in at an annualized rate of 5.35 million units in May—their highest since November 2009. This is a 5.1% increase from April’s upwardly revised 5.09 million, and a 9.2% increase year-over-year.. Read More