Talking about the good news in the most recent National Association of Home Builders/ Wells Fargo Housing Market Index for June 2013. Plus much more…
I just touched on the recent news from in the latest Home Builders/ Wells Fargo Housing Market Index on Monday. While this is of course talking about the entire US, it is still great news for housing and the economy. Plus the recently released MarketPulse report from Corelogic also contains some good news for real estate. Let’s look at both:
NAHB/Wells Fargo Housing Market Index
The National Association of Home Builders/ Wells Fargo Housing Market Index (HMI) for June 2013 increased by eight points over the May 2013 level (52). Any reading over 50 indicates that more builders are positive than negative about housing market conditions. This is the first time the HMI reading has been above 50 since way back in April 2006.
New Home Sales Up Because of Limited Supply
Rick Judson, NAHB Chairman, said that the limited supply of existing homes was helping the sales numbers for new homes. He said that buyers are looking at new homes since the inventory levels of existing homes are still low. Existing homes sales are still not where we want because of so many people being under water on their mortgages. Many people are going to wait until they can make a profit or at least break even before they sell their current home.
All three of the components of June’s national HMI gained:
- The reading for current sales conditions rose from 48 to 56
- Expectations for future sales gained nine points to 61
- June’s reading for buyer foot traffic in new homes gained seven points for a reading of 40
Home Builder Confidence Up by 4 Points in the South
While this is talking about big areas and not just the Anderson area, we can be glad that home builders in the South are more confident. Maybe more people looking to buy or sell will follow this trend?
More Good News is Housing Starts Are Up 28%
On Wednesday, the Department of Commerce reported that housing starts for the entire US increased by 6.8% from the level in April. May’s reading of 914,000 housing starts was reported on a seasonally adjusted annual basis. May’s reading was 28.80 percent higher than for May 2012. If we see more homes being built to meeting the increased demand for homes it could help to slow the increases in home prices. Just basic supply and demand stuff.
However, this is great news for the economy as well as real estate. There are plenty of jobs created when homes are being built. And I think you agree that we still need improvement in the unemployment numbers.
CoreLogic Market Pulse
Nice to see the increase in confidence for home builders. The recent news from CoreLogic could be part of the reason why both home builders and you should feel more confident:
April’s 12.1 percent rise in the CoreLogic Home Price Index was not only the biggest year-over-year gain since February 2006, it was the 14th consecutive monthly year-over-year increase in home prices.
No doubt that this is great news. So good that we have started hearing murmurs about another housing bubble. CoreLogic thinks that the increases in home prices will settle down to a more normal level. They seem to think we do NOT have to worry about another bubble in home prices. Not that we ever saw a bubble in home prices in Upstate South Carolina like other parts of the US. We certainly felt the pain after the national housing bubble burst though…
The Take Away:
Everyone should be glad to see yet another sign that the national real estate market is continuing to heal. I cannot say how glad I am to finally be able to write about good news for real estate every week. Despite the recent increases in mortgage rates and home prices, it is still a great time for some people to buy a home.
You have probably read some of the reports that home prices and mortgage rates are going to keep increasing. And the people at CoreLogic think we are not in danger of experiencing another bubble.
Always remember that homes prices can go up OR down
Buying a home is more than just the numbers. It is a personal decision. Sure it must make good financial sense. But there is more to owning a home besides the numbers for most people. It is about putting down roots and having a place of your own.
You can rent a house or you can own a home.
There is a difference…
The question you have to ask yourself is IF it is time for you to become a home owner?