The housing market is certainly showing stronger growth with the National Association of Realtors reporting that Existing-home sales have risen to it’s the highest level in 11 years. However, the report noted that Total housing inventory is now 9.7% lower than a year ago ( 1.85 million) and has sequentially declined for thirty consecutive months.
All is not lost though, for those homes that haven’t been sold yet and realized the 11-year price levels, the unsold inventory of homes is reported at a 3.4 month supply level, which is down from 4.0 months ytd.
Moreover, the NAR chief economist, Lawrence Yun had this to say about November home sales.
“Home sales in most of the country expanded at a tremendous clip in November. Faster economic growth in recent quarters, the booming stock market and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end. As evidenced by a subdued level of first-time buyers and increased share of cash buyers, move-up buyers with considerable down payments and those with cash made up a bulk of the sales activity last month. The odds of closing on a home are much better at the upper end of the market, where inventory conditions continue to be markedly better.”
Additionally, in concurrence with this morning MBA Mortgage Rate increase of 4.6%, Mr. Yun had this to say:
“The anticipated rise in mortgage rates next year could further cut into affordability if these staggeringly low supply levels persist,” said Yun. “Price appreciation is too fast in a lot of markets right now. The increase in homebuilder optimism must translate to significantly more new construction in 2018 to help ease these acute inventory shortages.”
The Dollar’s reaction to the pro-economic “#acceleration” report – Mr. Keith McCullough