For the 3rd month in a row, the sale of newly built, single family homes grew in May 2013. Data released by HUD and the U.S. Census Bureau showed that there was a 2.1% rise that month, which brings the seasonally adjusted annual rate to 476,000 units.
An index compiled by the National Association of Realtors, the Pending Home Sales Index, reached its highest level in 6 years this May. This is a 12.1% increase year-over-year and the strongest pace since December of 2006.
A report put out by Homes.com, the Local Market Index, shows improvement for all of the top 100 housing markets in the U.S. The index is based on repeat sales of properties and price performance on markets across the country.
According to data released by HUD and the U.S. Census Bureau, there was a 6.8% rise in nationwide housing starts in May. This brings the seasonally adjusted annual rate up to 914,000 units across America.
Realty Times is reporting that an increase in prices for new homes could mean a seller’s market for existing homes. A study performed by Metrostudy has found that a lack of newly built homes has driven an increase in new housing prices and, in turn, existing home prices. This current lack of inventory is only good news for those looking to upgrade and also an important indicator of a strengthening market.
The National Association of Realtors (NAR) is reporting an increase in pending home sales during the month of April. The information is taken from the NAR’s Pending Home Sales Index and shows a 10.3% increase from April 2012. It increased by 0.3% from the month previous.
The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) is a strong indicator of home builder outlook on sales conditions. A ranking of above 50 points on the HMI scale shows that more builders than not are optimistic about the American housing market. In June, the HMI increased by 8 points to a 52 overall ranking on the scale. This is the first time since April of 2006 that the HMI has read above 50 nationwide.
May was an excellent month for the housing market and showed vastly improved conditions for the majority of the U.S. Existing home sales rose by 4.2% month-to-month, a 12.9% gain from the year before. This brings the seasonally adjusted annual rate up to 5.18 million in May. This is the highest sales for existing homes has been since November of 2009.
Data released from the National Association of Home Builders/First American Improving Markets Index (IMI) is showing a growing number of housing markets that are statistically improving. The list has grown to 263 in the month of June and is the fifth month in a row with over 70% of markets in the study improving.
With a recent drop in vacancies and rents increasing, the commercial real estate market is strengthening and steadily improving. Vacancy rates for offices are projected to slowly fall from 15.7% in the 2nd quarter of 2013 to 15.6% in the second quarter of 2014. The markets with currently the lowest office vacancy rates include Washington D.C, New York City, Little Rock, AR and Birmingham, Al. All have vacancy rates below 13%. The industrial and retail commercial markets are expected to have modest decreases as well.