Real Estate & Market Report: February 28, 2014
This week I am excited to report that there has been a lot of positive economic data and much of it is related to the housing market. On Tuesday the Federal Housing Finance Agency reported that home prices rebounded 0.8 percent in December after declining 0.1 percent in November.
The trend for home prices has been upward in recent months and the quarterly reports on prices have risen for 10 straight quarters. Additionally, the FHFA reported that home prices are 7.7 percent higher than a year ago.
The second positive housing report also was released on Tuesday from the S&P Case-Shiller Home Price Index. According to this report home price appreciation was solid in December but slower than in previous months. The Case-Shiller's 20-city index for December rose an adjusted 0.8 percent, which was slightly down from the two prior month's gains of 0.9 percent and 1.1 percent.
This was the slowest gain since July however the fact that the report remained solidly positive is a great sign. The best part of the S&P report is that home prices are 13.4 percent higher than one year ago.
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In a wild turn of events, new home sales jumped a whopping 9.6 percent in January for the strongest yearly rate since July 2008. Given the harsh weather in the Northeast and the Mid-Atlantic regions, this report was far better than expected, especially after December's report showed a decline of 7.0 percent.
The West led the country in the new home market increase with an 11.0 percent gain. The South which was the leader in the number of new home sale units jumped 10.4 percent. The big rise in sales has brought down supply from 5.2 months in December to 4.7 months in January. The lack of inventory has limited sales overall and the further decline will continue to impact future new home sales.
Surprisingly January's heavy weather did not impact new home sales anywhere near the way it did for existing homes. This report, despite its wild swings, offers rare good news on the housing market and will boost the outlook for home builders.
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Next week potential market moving reports are:
Monday March 3rd - ISM Mfg Index
Wednesday March 4th - MBA Purchase Applications and ADP Employment Report
Thursday March 5th - First Time Jobless Claims and Factory Orders
Friday March 6th - National Employment Situation
As your mortgage professional, I am happy to assist you with any information you may need regarding mortgage or real estate information. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at 661-505-4300.
Please join me at American Family Funding on Thursday March 6, 2014 to meet my good friend, JD Kennedy, candidate for the 36th Assembly District. To learn more, support, or get involved with Kennedy for Assembly, Visit KennedyforAssembly.com Facebook: www.Facebook.com/KennedyforAssembly