by rtdosen | Jul 8, 2015 | Ryan Dosen Real Estate Articles
New Home and Resale Markets Continue Surge By Ryan Dosen Pending home sales have reached their highest level since April 2006 and the housing market finds itself gaining more and more ground as it leaves the dark recesses of the Great Recession in its rear view. New home construction is also showing many promising signs with housing permits hitting a post-crisis high. Overall, it is looking like the housing market will have its best year in almost a decade, and there are lots of reasons to be optimistic about the trend continuing. Resale Contracts Hit 9-Year High The National Association of Realtors’ (“NAR”) Pending Home Sales Index rose 0.9 percent in May and now sits at its highest level since April 2006. Interestingly, the Northeast was America’s strongest performing region. Pending home sales in the Northeast were up 6.3 percent in May and are now up 10.6 percent year-over-year. In discussing the impressive resale numbers, NAR Chief Economist Lawrence Yun noted a “broad based recovery with four major regions showing solid gains from a year ago and new home sales also coming alive.” Yun attributes much of the market’s improvement to the “steady pace of solid job creation seen now for over a year …” However, Yun cautions that home price growth is “unhealthy and unsustainable” at the current pace. “Housing affordability remains a pressing issue with home-price growth increasing around four times the pace of wages.” Basically, the price of homes is rising much faster than the amount of money people are bringing home. At some point, something’s got to give. We are also expecting the...
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