We
keep hearing concerns that tight existing home inventories and rising prices
will shrink sales, but the latest data lays those worries to rest. October Existing Home Sales increased
2.0%, to a 5.48 million annual rate. Sales grew in every major
region, with single family homes leading the way, although condos/coops went up
a bit too. Yes, sales are down (less than 1%) versus a year ago, but we're
still seeing the effects of Hurricanes Harvey and Irma, which sidelined home
buyers. Once we start getting reports not colored by these storms, many expect
an upward sales trend.
Nearly
half the homes sold In October were on the market less than a month, indicating
demand is there. This is put to increasing incomes, a strengthening economy,
near historically low mortgage rates and a growing appetite
for home ownership. Freddie
Mac's November 2017 Outlook expects this to be the best year for housing in a
decade, with 6.13 million homes sold and 1.2 million housing starts. Their chief economist said,
"construction will gradually pick up, helping to supply more homes in
inventory-starved markets." The Fed's latest data reveals home equity
hit $13.9 trillion in mid-2017, an all-time high.
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