Economic Outlook
Looking forward, there are
signs that conditions in the housing market should show continued improvement
in the coming months:
·
While
the economic recovery has been uneven, it continues to add jobs, a key driver
for housing market recovery.
·
Low
interest rates and post-bubble house prices that have settled back to normal in
most of the country means that housing affordability is high in many markets.
·
Growing
household formations, along with shortages of lots and labor, have resulted in
tight housing inventories in many markets across the nation.
Housing
Market Snapshot
Housing Starts (April 2017)
Total: 1.17 million↓ Single: 835,000↑ Multi: 337,000↓
Total: 1.17 million↓ Single: 835,000↑ Multi: 337,000↓
Home
Sales* (April 2017)
New: 569,000↓ Existing: 5.57 million↓
Median Home Prices (April 2017)
New: $309,200↓ Existing SF: $246,100↑
New: 569,000↓ Existing: 5.57 million↓
Median Home Prices (April 2017)
New: $309,200↓ Existing SF: $246,100↑
*Seasonally
Adjusted Annual Rate; Arrows indicate direction from previous month for starts
and sales and year for prices.
NAHB Chief Economist Robert Dietz’s analysis:
“Builders remain optimistic about market conditions even as they deal with higher building material costs and shortages of lots and labor. The housing market is expected to continue on a gradual, upward path throughout the year, buoyed by rising household formations, continued job growth and tight existing home inventory. Moreover, the pace of wage growth and upcoming Federal Reserve monetary policy announcements will help shape future changes in mortgage interest rates.”
submitted by Michael Kurpiel, CGA, CGP
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