Sep 12, 2012 | Housing Analysis
The number of U.S. housing markets showing “measurable and sustained growth” has increased by 19 this month, according to the National Association of Homebuilders’ Improving Market Index.
The Improving Market Index is a monthly report meant to identify U.S. markets in which economic growth is occurring broadly — not just in terms of home prices.
The IMI’s conclusions are based on three separately-collected data series, each from a different division of the U.S. government and each tied to specific local economic conditions.
In this way, the Improving Market Index gives a better idea of which markets will outperform averages in the months and years ahead. (more…)
Sep 6, 2012 | Housing Analysis
Home prices continue to rise nationwide.
According to the Standard & Poor’s Case-Shiller Index, home prices rose 6.9% between the first and second quarter of 2012, the largest quarter-to-quarter gain since the home-value tracker’s 1987 inception and another signal that the housing market is in recovery.
The private-sector metric’s results are similar to what the government’s Home Price Index showed for June, too — values rising quickly. In addition, for the second straight month, each of the Case-Shiller Index’s 20 tracked markets showed month-to-month improvement.
June would have marked three straight months if not for Detroit’s value-setback in April.
The top performing markets in June, as tracked by the Case-Shiller Index were :
- Detroit, Michigan : 6.0 percent gain
- Minneapolis, Minnesota : 4.8 percent gain
- Chicago, Illinois : 4.6 percent gain
However, it should be noted that the Case-Shiller Index pulls from a limited sample set. It does not include condominiums or multi-unit homes in its findings, nor does it account for new construction. These exclusions make a material impact on the results of both Minneapolis and Chicago, as examples. Both cities feature a large concentration of condos. (more…)
Aug 30, 2012 | Housing Analysis
In July, the third time this year, the Pending Home Sales Index crossed its benchmark value of 100, moving to 101.7.
A “pending home sale” is a home under contract to sell, but not yet sold. Data for the index is collected by the National Association of REALTORS® and published monthly.
The rise in July’s Pending Home Sales Index reading is important for two reasons — both of which highlight a U.S. housing market in recovery. Buyer and sellers in Massachusetts and across the country would do well to pay attention.
First, the Pending Home Sales Index is at its highest point since April 2010, the last month of that year’s federal home buyer tax credit. (more…)
Aug 29, 2012 | Housing Analysis
The market for newly-built homes remains strong.
As reported by the U.S. Department of Commerce, 372,000 new homes were sold in July on a seasonally-adjusted, annualized basis. A “new home” is a home that can be considered new construction.
July’s New Home Sales report highlights what today’s buyers of new construction and the nation’s home builders have witnessed for themselves already — that the market for newly-built homes is improving in Massachusetts and nationwide.
The number of new homes sold in July on a seasonally-adjusted, annualized basis matches the tally from May 2012, and is the highest reading since April 2010, the last month of that year’s federal home buyer tax credit. (more…)
Aug 28, 2012 | Housing Analysis
The housing market recovery appears to be sustainable.
According to the Federal Housing Finance Agency’s Home Price Index, home prices rose by a seasonally-adjusted 0.7 percent between May and June 2012. The index is now up 3.0% over the past 12 months, and made its biggest quarterly gain since 2005 last quarter.
The FHFA’s Home Price Index measures home price changes through successive home sales for homes whose mortgages are backed by Fannie Mae or Freddie Mac, and for which the property type is categorized as a “single-family residence”.
Condominiums, multi-unit homes and homes with jumbo mortgages, for example, are excluded from the Home Price Index, as are all-cash home sales. (more…)
Aug 23, 2012 | Housing Analysis
Home resales climbed 2% last month as the housing market continues its measured, steady recovery.
According to the National Association of REALTORS®, Existing Home Sales rose to 4.47 million units in July on a seasonally-adjusted, annualized basis.
An “existing home” is a home that cannot be classified as new construction and, despite a reduction in the national homes inventory, the number of previously-occupied homes sold in July was higher by 10% as compared to one year ago.
The Existing Home Sales also reported the folliowing :
- First-time buyers accounted for 34% of all purchasers, down from 34% in June
- Real estate investors accounted for 16% of all purchasers, down from 19% in June
- Cash buyers accounted for 27% of all purchasers, down from 29% in June
In addition, the real estate trafde group reports that distressed sales accounted for a smaller percentage of the overall home resale market in July. Just 24% of home resales were for homes in various forms of foreclosure or short sale. (more…)
