Resilient Housing Market

Signed contracts on new homes were up 13.8% for the month of June.  This is a very large increase and much stronger than the estimated 4%.  Adding in June’s demand, annual sales are up 7%.  Median home pricing for the year has increased by 5.8% to $329,300.  This was a very strong report, and proves that the housing market is very resilient and strong, especially when analyzing the new construction home sector.

Another strong housing report was released last week by the Federal Housing Finance Agency.  Their Home Price Index showed that home prices fell in May slightly by 0.3%, but are still up by 4.9% since May of 2019.  This data is slightly lagging as it’s from May, plus it only analyzes data on single-family homes with conforming loan amounts.  Despite these facts, it still shows strength as home pricing is still on the rise.

Lastly, the strongest of the reports, Existing Home Sales, showed that sales on already-built or “existing” homes, increased by a whopping 20.7% for the month of June.  This was the largest one month jump ever.  Last year’s numbers showed that sales were down 27% at the time, further reflecting the massive improvement we’re seeing this year.  Also, inventory numbers were down by 18.2% for the month, which makes you wonder, if there were more homes available for sale, would these numbers be even stronger?

As seen in each of these reports, the housing market is very resilient and demand for homes is still very strong.