The Resilient Housing Market

Home prices rose in the month of April by 0.2% and by 5.5% year over year, according to the newest report from the Federal Housing Finance Agency.  The FHFA’s Home Price Index measures home price changes on single family detached properties purchased and/or refinanced with conventional, conforming mortgages.

New home sales increased by 16.6% in the month of May.  This was a large increase over the estimated 1.6% forecast.  Compared to last year, new home sales are up 12.7%.  Estimated inventory of new homes has decreased by 7,000 down to 318,000.  At the current sales pace, supply of new homes available for sale is about 5.6 months.  Lastly, median sales prices of new homes has increased to $317,900, which is an increase of 4.9% since last reported.  The overall average sales price was $368,800, which is an increase of 4.6% since last reported.  New home sales measure signed contracts, not closings, on new single-family homes.

Reports that contain measurements that are further away from the first few months of the coronavirus outbreak show a strong comeback.  As states across the nation re-open their businesses, we are seeing housing reports improve, and the housing market resume its heathy onward growth.