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.
Ask any professional involved in the real estate market and they will tell you that when interest rates are low, it’s a great time to buy. Lower interest rates mean higher affordability because mortgage payments are smaller.In December of 2014, the 30-year mortgage rate tracked by Freddie Mac stood at 3.86%—the lowest since May. Read More
In November, existing-home sales in the U.S. declined 6.1% from the previous month. They dropped to the lowest annual pace since May of 2014, falling to 4.93 million units from 5.25 million in October. (Source: “Existing-Home Sales Lose Momentum in November as Inventory Slightly Tightens,” National Association of Realtors web. Read More
The chart below shows us that between April and August of this year, home prices in the U.S. declined. The S&P Case-Shiller Home Price Index is only released 60 days after each month’s end, so while data for September and October are not yet available, based on what I’m about to tell you, five years after the Great Recession, the. Read More
As we progress to the end of 2014, my skepticism towards the U.S. housing market increases. In fact, the fate of home prices in 2015 is in question.I don’t expect an outright collapse of the housing market like the one we saw in 2007, but I see the momentum in housing prices that began in 2012 and picked up in 2013 dissipating for several reasons.. Read More
So the S&P 500 has touched the 2,000 mark.Will the S&P 500 continue to march to new highs?Well, my opinion towards the stock market hasn’t changed. I remain skeptical for a variety of reasons, many of which I have shared with my readers over the past few months.But I have a new concern about the stock market, something that hasn’t. Read More