The week started off with a bang with the existing homes sales report showing the housing market taking off.
- The report shows that sales jumped 5.1 percent in May to an annual rate of 5.35 million.
- Home prices for existing homes are up to $228,700 which is 7.9 percent higher than the same time last year. Much higher here in California.
- Sales of single family homes are up a BIG 5.6 percent for the month of May.
Even better news is that year-on-year, single-family sales are up 9.7 percent.
- One of the biggest indicators of housing market improvement is the increase in first-time buyers. In May first-time buyers represented 32 percent of all sales vs 27 percent this time last year.
It appears that the only thing holding down sales is the continued lack of supply which is down to 5.1 months vs 5.2 in April.
Continuing the great news for the housing market was Tuesday’s new home sales data.
- New home sales rose 2.2 percent in May to an annual rate of 546,000. On top of this increase is the upward revision by 27,000 for both March and April’s reports.
Similar to the existing home market, the new home market is struggling with a lack of supply.
- The supply shortage is creating upward pressure on home prices.
- Year-on-year sales of new homes are up 19.5 percent.
This week’s potential market moving reports:
- Monday June 29th – Pending Home Sales
- Tuesday June 30th – Case-Shiller Home Price Index & Consumer Confidence
- Wednesday July 1st – MBA Applications and ADP Employment Report
- Thursday July 2nd – – First Time Jobless Claims & Employment Situation
- Friday July 3rd – Markets Closed for July 4th Holiday