This week will be a short week but there is still going to be some super important stuff anyone interested in real estate must watch. But first let’s look back at last week’s news!
Home Prices Increasing!
In case you missed the HUGE news, last week Case Shiller said they had Never Seen Home Prices Increases Like This. To recap, Case Shiller said that US home prices had increased by 12.1% compared to April 2012.
Later in that same article I shared the latest news from FHFA on home prices. They said that home prices have increased by 7.4%. And of course I compared that to what is happening right here in Upstate South Carolina.
New Home Sales
We had even more good news for the economy and the real estate market when the Department of Commerce released the New Home Sales for May. They said that new home sales are up 23% from the level back in May 2012.
On Friday, I posted last week’s Mortgage Rate Update. I included an extra chart from FHFA showing mortgage rates this week. Check it out or for the highlights let me sum it up with one word: UP
I think we are going to see rates keep increasing no matter what the Fed does with QE. Combine rising mortgage rates with the increasing home prices and it should help to motivate buyers that have been dragging their feet.
Counting Chickens Before They Hatch
I might be a little superstitious but I never like to tell my wife when I get a listing under contract. She starts planning on how we will spend the money before it happens. So when the National Association of REALTORS reported that Pending Home Sales in May rose to their highest level in 6 years, I had to think about how being under contract is NOT the same as walking out of the closing attorney’s office.
Never count your chickens before they hatch…
What‘s Ahead This Week
This week will be a short week for many because of the upcoming 4th of July holiday. But we can still expect plenty of real estate or economic news this week!
Today we can expect the latest numbers for Construction Spending.
On Wednesday we will find out more about the economy and the employment situation when ADP releases their private sector jobs.
Despite the holiday, there will be some people working Friday. That includes the Department of Labor since they will be releasing their Non-farms Payrolls Report and the National Unemployment Rate. Remember that the unemployment rate is one of the factors the Fed is watching in regards to their plans of tapering off QE.
Considering how mortgage rates jumped the last time the Fed just mentioned cutting back on QE, we all need to pay attention to the unemployment rate.