Even while the pace of home price acceleration normalizes, housing has shown recent signs of ongoing strength. Both housing starts and future building permits are on the rise nationally. Inventory levels are increasing in most metro areas, driven higher by rising prices and more confident sellers. Homes are still selling quickly and for close to or even above list price.
New Listings were up 3.4 percent to 1,571. Pending Sales increased 19.8 percent to 1,173. Inventory shrank 9.2 percent to 6,000 units.
Prices moved higher as Median Sales Price was up 13.2 percent to $215,000. Days on Market decreased 3.6 percent to 81 days. Months Supply of Inventory was down 18.0 percent to 5.0 months, indicating that demand increased relative to supply.
Interest rates remain attractive, even as Federal Reserve banter is finally hinting that quantitative easing is reaching its fateful conclusion. Capital markets have exhibited some volatility, but ultimately it’s all about earnings and growth, and corporate earnings have been encouragingly strong, while private job gains have recently exceeded expectations.
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