Housing Market Continues to Improve, Despite Weak June

Housing Market Continues to Improve, Despite Weak June

Posted 08/06/2015

Real Estate Industry Update

The nation’s housing recovery continues to chug along at a steady, albeit, slower-than normal pace. Here’s a look at the latest housing reports and how they reflect on the overall residential real estate market.

National Association of Home Builders: June’s 482,000 new-home sales represented an 18 percent increase over the year before, but were 6.8 percent fewer than May’s 517,000 sales. Not to worry, though, says the NAHB. New-home sales, overall, have been on the upswing since 2012 – a trend that is expected to continue through the rest of the year and into 2016.

National Association of Realtors Pending Home Sales Index: Pending sales of existing homes were off 1.8 percent in June from the month prior, but improved 8.2 percent from June 2014, marking the 10th consecutive year-over-year gain, and providing an example of ongoing market recovery.

Census Bureau Housing Vacancy Survey: The number of independent households that rent or own has been growing. As of the second quarter, there were roughly 117.3 million households, or 1.6 million more than existed at the same time last year. This growth is expected to increase the demand for housing of all types.

In general, the overall monthly decline experienced in June is not concerning to NAHB Chief Economist David Crowe, who writes in his monthly “Eye on the Economy” newsletter, “Strong job gains are bolstering housing demand. Rising builder confidence, housing starts and low interest rates all point to continuing recovery in the housing sector, even as industry headwinds, including access to lots and labor, will produce bumps along the road.”