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Home prices breaking records! {Market Update} August 21st

Home prices breaking records! {Market Update} August 21st
August 21, 2017 abryant

 

Laugh and the world laughs with you, snore and you sleep alone.

I choked on a carrot this afternoon and all I could think was “I bet a donut wouldn’t have done this to me.”

Doesn’t expecting the unexpected make the unexpected expected?

Life is like a hot bath. It feels good while you’re in it, but the longer you stay in, the more wrinkled you get.

Why is it called a “building” when it’s already been built ?

 

Now the Market Update . . .

In July, retail sales recorded their biggest increase in 7 months. Consumer spending rose at a 2.8% annualized rate in the second quarter.

Regardless of the strong data, inflation continues to be soft, a concern to Fed members. Weak inflation supports low rates, including mortgage rates.

Minutes released from the Fed’s last FOMC meeting show members are concerned about the lack of inflation, making a near-term rate increase unlikely.

 

Rising demand for new homes drives builder confidence. Homebuilder sentiment rose 4 points to 68 in August, its highest level since May.

Although demand was higher, construction of new homes fell 4.8% in July. Building permit numbers were also down, as labor and material prices increase.

Home prices keep rising. Median prices in the 2nd quarter eclipsed a record high set in 2016. Prices for single family homes rose in 87% of national markets.

More Housing News:

There continues to be commentary that the Fall real estate market may be stronger than normal due to the pent-up demand from a consistent lack of available inventory.

The one thing to watch is what happens both domestically with President Trump policies, as well as any geo-political events, such as Thursday’s act of terrorism in Barcelona.

 

Surprising facts on Homeownership 

Domicile Dominion From Elliot F. Eisenberg, Ph.D. 

Among western industrialized nations, Singapore’s homeownership rate is tops; 90.8%, Norway follows at 82.8%, then Iceland at 77.8%, Italy at 72.9%, Finland at 72.7%, Luxembourg at 72.5%, Belgium at 71.3%, Sweden at 70.6%, Ireland at 68.6%, Netherlands at 67.8%, Canada at 67.6%, Israel at 67.3%, Australia at 67%, France at 65%, New Zealand at 64.8%, and the USA in 16th spot at 64.5%. Including all nations, the US rates 41st.

 

My friend said to me, “What rhymes with orange?”

I said, “No it doesn’t.”

 

Next week’s potential market moving reports are:

Tuesday, August 22nd:        FHFA House Price Index

Wednesday, August 23rd:   MBA Mortgage Applications, New Home Sales

Thursday, August 24th:       First Time Jobless Claims, Existing Home Sales

Friday, August 25th:             Durable Goods Orders