Some housing sales data now shows prices with a slight year over year increase including the NAR’s existing home sales and the Commerce Department’s new home sales data. The NAR data is from February, representing mostly contracts from December. It tells us nothing about the current market. The Commerce Department data is more current, representing February contracts, but it can be skewed by product mix. Real time listings data, which over time has correlated well with subsequently reported sales data, shows listing prices up an average of 3.8% nationally, on a year over year basis as of April 9.
The supply side of the law of supply and demand is working. There’s less supply offered at these low levels and seller asking prices have firmed up because of that. Numerous measures of active inventory show substantial year to year declines. “Shadow inventory” is a hollow threat as more and more of it becomes non-economic or non-functional. But the demand side is hindered by a broken, dysfunctional, dishonest, and even criminal housing finance system. Buyer willingness to buy is often stymied by this system. At the same time, stymied buyers usually keep trying until they are successful.
Most demand markers, while up sharply over the same period last year, remain extremely weak historically. The number of buyers may have increased, but huge numbers of sales are falling through because of problems with financing.
Click here to download complete report in pdf format (Professional Edition Subscribers) including 28 pages of charts and clear, cutting edge analysis that you can use to gain an edge in the market. Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. 30 day risk free trial for new subscribers. Click here for more information.
Stay up to date with the machinations of the Fed, Treasury, Primary Dealers and foreign central banks in the US market, along with regular updates of the US housing market, in the Fed Report in the Professional Edition, Money Liquidity, and Real Estate Package. Try it risk free for 30 days. Don’t miss another day. Get the research and analysis you need to understand these critical forces. Be prepared. Stay ahead of the herd. Click this link and begin your risk free trial NOW!
Enter your email address in the form to receive email notification when Professional Edition reports are posted.