Monday, July 31, 2017

Real Estate & Mortgage Update

We got hit with a variety of housing market news last week, starting with Monday's reveal that Existing Home Sales took a bit of a breather in June, dipping 1.8%. But they're still at a healthy 5.52 million unit annual rate, and up by 0.7% over a year ago. Economists expect real estate to maintain its overall upward trend of the last few years. Of course we do have the headwinds of tight supply and rising prices, with median existing home prices hitting new record highs two months in a row. But demand stays strong, as 54% of the listings sold in June were less than a month old.

Tuesday we learned New Home Sales moved up 0.8% in June to a 610,000 unit annual rate, putting them up 9.1% versus a year ago. The supply increased to 5.4 months, aided by a 3,000 unit gain in inventories. Plus, the median price of new homes sold was down 3.4% versus last year, indicating builders are moving in the right direction. More evidence of this came with the news the homeownership rate increased in Q2 and is up 0.8% from a year ago, to a three-year high. The chief economist of an national real estate site believes "we may have turned a corner when it comes to the steep dive in homeownership we've seen over the past 10 years."

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