It appears as though there is confidence building in the New US administration. Housing is always a fore running indicator to the economy. The housing market began falling at the end of 2006. A full year before the crash. Descent outlook for those with positions in the lumber industry. Hopefully it will spill over into other commodities in the material sector.
The National Association of Realtors:
Said on Wednesday existing home sales jumped 3.3 percent to a seasonally adjusted annual rate of 5.69 million units last month. That was the highest level since February 2007 and any time during the Obama administration.
December's sales pace was revised up to 5.51 million units from the previously reported 5.49 million. Economists had forecast sales rising 1.1 percent to a pace of 5.54 million units in January. The NAR also reviewed sales data going back to 2014. The revisions were minor and had no impact on the characterization of the current housing market. Home sales rose 3.3 percent in January from December, National Association of Realtors said Wednesday.
Strong demand is pushing up median home prices, which jumped 7.1 percent from a year earlier to $228,900. Just 1.69 million homes were on the market nationwide in January, It would take only 3.6 months to deplete that supply at the current pace of sales.
The housing market has recovered somewhat from the bust that began in 2006. But its newfound market health is creating its own set of challenges. In high-demand markets, on the West Coast, homes are being purchased after less than a month on the market, according to Redfin brokerage.
Colorado found the fastest market last month, with purchase contracts signed just 23 days after listing for a typical home, half the time of a year earlier. Seattle was the second, with 26 days on the market, followed by southern California, at 27 days.
The strength in sales predict growth going forward, as new homeowners purchase furniture, appliances and spend more on landscaping and outdoor equipment. Creating jobs which in turn will generate more home purchases. Home sales also tend to spur renovations, updating aging properties and generates additional construction work and material sales enhancing the broader economy. |
