Tuesday, May 24, 2016

Housing Market Gains Strength

There has been some recent reports on housing showing some surprising strength given the seemingly never ending dismal state of the market.

A few weeks back we received news from the National Association of Realtors that median existing single-family home price's increased in 87 percent of measured markets, with 154 out of 178 metropolitan statistical areas.  Considering new home construction has been lackluster for a few years it has really forced many buyers into existing homes.  Generally existing homes sell for a lower price than new homes.

Today we actually received good news regarding new housing sales. I just recently highlighted this area in the latest MAD Weekly Review with quick review of housing starts. New housing starts and sales are good for the economy as it entails plenty of labor and materials.

The April report showed seasonally adjusted housing sales jumped 22.8% from a year ago, and were up 16.6% since March(which also was revised higher).  Additionally the median sales price rose  9.7% from April 2015 to $321,000.  These are pretty good numbers, and I think considering how range bound the stock market has been this is considered really good news right now.

Coupled with the stronger housing starts we've seen of late and it seems apparent the rampant under construction post-recession appears to have abated somewhat for now. I'll put together a more detailed analysis on housing once the first half of the year passes.

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