Thursday, July 23, 2009

Housing Market: No Longer The Weakest Link

According to today's report from the National Association of Realtors:

Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June.

Highlights of the report include:

1. Following a $8,100 increase in May, the median home price increased in June by another $7,100. Median home prices have increased in 4 out of the last five months, following a string of 7 consecutive monthly price declines starting last July.

2. There have been three consecutive monthly sales increases of 110,000 (April), 60,000 (May) and 170,000 (June) for the first time in more than a year.

3. Total housing inventory in June fell 0.7% to 3.82 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace, down from a 9.8-month supply in May and down from last June's inventory of 11 months. The 9.4-month supply is the lowest level in at least a year.

WSJ Article: "Economists React."

Bottom Line: When you simultaneously have increasing unit sales, rising median home prices, and declining inventory levels, you've got all of the ingredients necessary for a real estate market rebound.

8 Comments:

At 7/23/2009 12:03 PM, Blogger misterjosh said...

Bottom Line: When you simultaneously have increasing unit sales, rising median home prices, and declining inventory levels, you've got all of the ingredients necessary for a real estate market rebound.

You left out a big fat government subsidy!

 
At 7/23/2009 2:59 PM, Anonymous Anonymous said...

Their summary contradicts their report. Please resolve! -- Best wishes from Kansas!

 
At 7/23/2009 7:23 PM, Anonymous Anonymous said...

But why does the government have to encourage people to go into debt?

 
At 7/23/2009 8:21 PM, Anonymous Anonymous said...

I heard a radio host say that the reason for the increase in median home price is that $800,000 homes are going on the market for $300,000 - $400,000 and are raising the average even though in reality someone is taking a terrible loss on the property. Can you clarify as to whether or not that statement is valid?

 
At 7/23/2009 9:18 PM, Blogger Robert Miller said...

This comment has been removed by the author.

 
At 7/23/2009 10:54 PM, Anonymous Benny The Free Marketeer said...

Robert Miller reads numbers well, but has no feeling for human animus.
This is the bottom baby. Buy, buy, buy.
No recession unfolds, or recovers, in exactly the same way. But in SoCal people are looking at houses, and buying. Likely more traction ahead,
The results of easy money and deficit spending are just happening now. It is hard to tell when the tide turns exactly, but I sense we are few minutes past..
The real stimulus is still ahead.

 
At 7/23/2009 11:55 PM, Blogger Robert Miller said...

This comment has been removed by the author.

 
At 7/24/2009 5:57 PM, Blogger 1 said...

"There's barely evidence that TARP funds are being loaned out"...

Yes sir but there is mounting evidence of TARP fraud...

Gee! Who would've ever guessed that would have happened?

 

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