We were certainly traveling
on happy trails last week following two upward trending housing market reports.
New Home Sales in September went up 3.1%, just shy of a 600,000 unit annual
rate. Compared to a year ago, sales are up 29.8%. If that doesn't make
you happy, consider this. After experiencing a summer lull in August, new home
sales in September posted their fastest sales pace since 2008, excluding July's
excellent numbers. The biggest obstacle to higher sales remains low
inventories. As those slid in September, it shows builders are falling behind
demand, so there's lots of room to increase construction activity.
The other happy housing report? The Pending Home Sales index of
contracts signed on existing homes was up 1.5% in September following its
August dip. Combining readings from recent months indicates existing
home sales in coming months should continue the gains made in September.
The index is 2.4% ahead of September last year, its 25th month in a row of
year-over-year increases. The national Case-Shiller home price index was up
0.6% in August and up 5.3% versus a year ago. The FHFA index of prices for
homes bought with conforming mortgages gained 0.7% in August and 6.4% over a
year ago. Should make more homeowners happy enough to list their properties.
