Discussing another report on increasing home prices, home values in each state, confidence in the housing market is booming and much more!
US Home Prices Up 7% YoY
From Clear Capital:
Nationally, quarter-over-quarter (QoQ) home price growth remained steady at 1 percent from May. Year-over-year (YoY) home price growth grew 0.1 percent to 7 percent from May. All data reported uses Clear Capital’s patent-pending QoQ measurement. This measurement uses the newest data to create timely indices in rolling quarter intervals, which significantly reduces multi-month lag time that may be experienced with other indices.
Good news but remember that this is talking about the entire country. Clear Capital does break things down further by region and major metro areas for those wanting to see what is happening elsewhere.
For those interested in our area, check out the Anderson County SC Market Reports
Median Home Values By State
Since I just shared a report on increasing home prices, lets look at NAR’s estimate of the median home value in each of the 50 states:
Please remember this is an estimate for an entire state so if you are wondering about your home’s value, my suggestion is to consult with a local Realtor.
Confidence in Housing Market Reaches Highest Levels since 2014
Today, Chase introduces a new housing confidence index in partnership with Pulsenomics showing record highs among U.S. homeowners and renters in three key measurement areas: their take on market conditions, aspirations for homeownership, and expectations regarding home values and affordability.
When asked if it was a good time to buy and sell a home, both homeowners and renters across the country agree that now is a good time for people to purchase. By a ratio of nearly three-to-one, the number of households who believe ‘now is a good time to buy a home’ exceeds the number who said now is a bad time.
Nearly 60 percent of renters across the country are looking to buy in the next five years. Fifty-three percent of renters said, when it comes time to buy a home, the most important feature will be neighborhood safety. Renters said the size of the home and the size of the backyard were the next top choices with 28 and 25 percent, respectively. Choosing between an urban or suburban setting was much lower on the list of priorities with 9 and 15 percent, respectively.
I am not sure how a new housing index can say that housing confidence is the highest since 2014 if it is new? Let’s not look a gift horse in the mouth since the news is very good overall!
Terry Loebs, founder of Pulsenomics, said:
These record results were driven by healthy assessments of local real estate market conditions among existing homeowners, but even more so by surging expectations among renters. Seven in ten renters now express confidence in their ability to afford a home someday, and nearly three-quarters of those with an opinion say that buying a home is the best long-term investment a person can make.
One really interesting finding is that homeowners said that landscaping is a top renovation priority. Landscaping beat kitchens and tied with bathrooms for number 1!
If you were looking to get a home ready for the market, it could be that improving your curb appeal and yard should be a top priority.
Weekly Jobless Claims Rise
In the week ending June 23, the advance figure for seasonally adjusted initial claims was 227,000, an increase of 9,000 from the previous week’s unrevised level of 218,000. The 4-week moving average was 222,000, an increase of 1,000 from the previous week’s unrevised average of 221,000.
Remember it is the 4-week moving average that I recommend watching. Check out the chart:
You can see the steady decline since the economy hit the skids during the Great Recession. I would not freak out about this increase.
Always look for trends not blips…
Chemical Activity Barometer Increases Again
From the American Chemistry Council:
The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), rose 0.1 percent on a three-month moving average (3MMA) basis in June to 122.27. This marked the barometer’s tenth consecutive gain, following revisions. The barometer is up 4.1 percent on a 3MMA compared to a year earlier. The unadjusted CAB also increased, notching a 0.3 percent gain, pushing it to a 4.3 percent gain year-over-year. The March, April, and May readings were all adjusted upward. June readings indicate a continued expansion of U.S. commercial and industrial activity into early 2019.
The Chemical Activity Barometer is a leading economic indicator derived from a composite index of chemical industry activity. The chemical industry has been found to consistently lead the U.S. economy’s business cycle given its early position in the supply chain, and this barometer can be used to determine turning points and likely trends in the wider economy. Month-to-month movements can be volatile so a three-month moving average of the barometer is provided. This provides a more consistent and illustrative picture of national economic trends.
Great news for the economy in the coming months. This being the 10th consecutive increase shows how strong the economy really is.
Philly Fed State Coincident Index Increases in ALL 50 States
From the Federal Reserve Bank of Philadelphia:
The Federal Reserve Bank of Philadelphia has released the coincident indexes for the 50 states for May 2018. Over the past three months, the indexes increased in all 50 states, for a three-month diffusion index of 100. In the past month, the indexes increased in 45 states, decreased in one, and remained stable in four, for a one-month diffusion index of 88.
OK that sounds great but what does this mean? Well it is a pretty good way of seeing what is happening in each state economically.
The Philly Fed describes it as:
The coincident indexes combine four state-level indicators to summarize current economic conditions in a single statistic. The four state-level variables in each coincident index are nonfarm payroll employment, average hours worked in manufacturing by production workers, the unemployment rate, and wage and salary disbursements deflated by the consumer price index (U.S. city average). The trend for each state’s index is set to the trend of its gross domestic product (GDP), so long-term growth in the state’s index matches long-term growth in its GDP.
Now check out the map showing each states:
That dark green for South Carolina is pretty!
Chicago Fed National Activity Index Fell
From the Chicago Fed:
Led by declines in production-related indicators, the Chicago Fed National Activity Index (CFNAI) fell to –0.15 in May from +0.42 in April. Two of the four broad categories of indicators that make up the index decreased from April, and two of the four categories made negative contributions to the index in May. The index’s three-month moving average, CFNAI-MA3, decreased to +0.18 in May from +0.48 in April.
Not as good as the news from the Philly Fed…
Still, the majority of the economic and housing news in today’s news is positive. So that is a pretty good way to end the week!
Well that is all I have time for today! Be sure to hit the share buttons to impress your friends on Facebook, Google and Twitter!