Looking back at last week’s news for real estate and today’s report on Existing Home Sales from NAR…
Happy Monday to you! I had an interesting weekend with an offer still on the table for one of my listings. HUGE story related to that but sadly can’t share my gripes since this isn’t closed yet or even really under contract yet. If I told you, I would have to break out my Jedi mind control and make you instantly forget about it so what’s the point?
Instead let’s look at the news for real estate from last week and what we can look forward to this coming week. Last week we saw lower than expected numbers for housing starts but home builder confidence increased. Which does not seem to make much sense as I discussed in Home Builder Confidence at Highest Level Since 2006
Jobless Claims and the Economy
We also got some good news last week as jobless claims fell. Still much more room for improvement when it comes to the economy though. Also Federal Reserve Chair Ben Bernanke testified before the Senate last week. He said that falling gold prices were an indication of increasing confidence in the economy but that it was “way too soon” to say when the Fed’s quantitative easing program would be reduced. I have written several times about QE and what we can expect for real estate if/when the starts to taper QE.
Retail Sales Down
Sadly, retail sales for June came in lower than expected at 0.4%. Many economists were expecting it to be higher based on May’s reading of 0.5%.
Consumer Price Index
The Consumer Price Index (CPI) for June 2013 came in as expected at 0.5 percent against May’s reading of 0.1 percent.
Housing starts in June but analysts did not see this as a sign of the housing market starting to soften.
Glad that Fed Chair Ben Bernanke did not cause stick his foot in his mouth last week after the FOMC minutes were released. Like I said above, Bernanke testified before the Senate and he emphasized that it is “way too soon” for the Fed to change anything about QE. So we can breathe a sigh of relief since this is good news for mortgage rates.
As usual on Fridays, I posted the Mortgage Rate Update. But to recap, most rates reported by Freddie Mac and the MBA dropped slightly.
NAR just released their latest report on Existing Home Sales. From NAR:
Existing-home sales declined in June but have stayed well above year-ago levels for the past two years, while the median price shows seven straight months of double-digit year-over-year increases.
Remember they are talking about the entire US. While reports like this will help to shape consumer perceptions, they may not be the reality of what is happening in your local market.
Busy week ahead that will be full of news for real estate. Today we got the latest Existing Home Sales report. Tomorrow the FHFA will release their Home Prices report. Then on Wednesday we can look forward to the New Home Sales.
I will post more about these reports so please check back!