In early spring, when coronavirus shutdowns began, few would've predicted that the summer housing market would be as hot as it turned out to be. Buyer demand rebounded quickly and home sales numbers surpassed year-before levels sooner than anyone could've expected. However, though the housing market's rebound is undoubtedly good news, there is another side to the story. Put simply, home buyers returned to the market before sellers and the resulting imbalance drove already low inventory levels even lower. And … [Read more...]

New residential construction is vital to keeping the housing market balanced. After all, there's no easier way to increase the number of homes for sale than to build more homes. And, in today's market, where inventory is low and demand is high, new home construction is more important than ever. If home builders build enough homes to narrow the gap between supply and demand, it'll help give buyers more choices and keep prices from rising too quickly. That's why the National Association of Home Builders' monthly … [Read more...]

New numbers from the National Association of Realtors show contract signings up for the third straight month. Contract activity rose 5.9 percent in July and is now 15.5 percent higher than the same time last year. The new data is more evidence that the housing market has experienced a V-shaped recovery, with summer sales numbers proving buyers have returned in big numbers following the coronavirus lockdowns that kept them at bay this spring. And, according to Lawrence Yun, NAR's chief economist, home sales would be … [Read more...]

The S&P Case-Shiller Home Price Indices have been tracking home prices for more than 30 years and are considered among the leading measures of U.S. home values. According to the latest release – which contains data through the end of June – home prices are up 4.3 percent over last year at the same time. But while prices continue to increase, they are doing so at a slower pace. In fact, June's increase was flat from the month before and both the 10- and 20-City Composites saw declines. Craig J. Lazzara, managing … [Read more...]

Before the coronavirus' onset in mid-March, most industry analysts were forecasting a hot housing market this year. Buyer demand was up and the inventory of homes for sale was lower than normal. Inevitably, that combination would lead to homes selling quickly, competition among buyers, bidding wars, and price increases. But then the pandemic took hold and many economists pulled back and adjusted their outlook for what seemed like it'd be an enormous obstacle for hopeful home buyers and sellers this year. … [Read more...]

The National Association of Home Builders' Housing Market Index measures builder confidence in the market for newly built single-family homes. The survey, which has been conducted for the past 35 years, scores builders' responses on a scale where any number above 50 indicates more builders view conditions as good than poor. In August, the index reached a score of 78, which matches its all-time high set in 1998. Robert Dietz, NAHB's chief economist, says the housing market's rebound has been a bright spot during the … [Read more...]

Housing conditions are largely dictated by supply and demand. Take a look at the balance of interested buyers to available homes and you can get a good idea where the market is headed. But while that seems simple enough, the underlying factors that cause shifts in supply and demand are less clear cut. That's because there are an almost infinite number of things that might play a role. Everything from the global economy to the time of year can affect the balance of buyers and homes for sale. For example, the typical … [Read more...]

The S&P Case-Shiller Home Price Indices are considered the leading measure of U.S. home prices. According to their most recent release, which covers data through the end of May, national home prices are up 4.5 percent year-over-year – which is down from 4.6 percent in the previous month's report. Craig J. Lazzara, managing director and global head of index investment strategy at S&P, says though home prices are still increasing, they may be rising at a slower rate than before. “In contrast with the past … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, demand for home purchase loans increased 2 percent last week and is now 19 percent higher than it was last year at the same time. The improvement comes during a week when average mortgage rates were mostly flat, with only rates for loans backed by the Federal Housing Administration seeing a significant drop. Overall, though, mortgage rates remain near all-time lows. Joel Kan, MBA's associate vice president of economic and industry … [Read more...]

At the beginning of the year, most analysts were predicting a hot spring sales season for the housing market. But in the wake of the coronavirus outbreak, a lot of prospective home buyers put their plans on hold. Now, it appears they're ready to buy. According to a new analysis, contract signings were up 15 percent month-over-month during the last week of June and the typical home for sale was sold in just 19 days. That's good news for the housing market, as it means spring's crashing sales numbers will likely see … [Read more...]