A new year customarily elicits widespread speculation on the economy and its various aspects, but 2020 has the added intrigue of a fresh decade and an upcoming presidential election. The housing
Solid Home Sales Streak Continues by Scott McDaniel
|Home Prices are Rising, but Rates stay low and Home Appreciation remains Stable|
The FHFA (Federal Housing Finance Agency) released their House Price Index, which measures home price appreciation on single-family homes with conforming loan amounts. The report showed that home prices rose 0.1% in March. The year over year appreciation rate remained stable at 4.9%
The Case-Shiller Home Price Index was also released. Case-Shiller has a few indexes, two of which we pay the most attention: The National Index and the 20-city Index.
The National Index, which covers all nine U.S. Census divisions, reported a 3.7% annual gain in March, down from 3.9% seen in February. The 20-city Index moderated from 3% to 2.7% on a year over year basis. Las Vegas, Tampa and Phoenix led the gains. It makes sense that the FHFA numbers were higher, as that report measures homes with conforming loan amounts. While one could have a million dollar home with a conforming loan amount, for the most part, it likely represents lower priced homes. We know that the homes that are priced lower have been moving more quickly and are likely appreciating at a higher clip.
New Home Sales, which measures signed contracts on new homes, were down 6.9% in April, which was weaker than the 3% drop expected but this doesn’t tell the whole story. The March report was revised significantly higher. When factoring in the revision, sales were only down 2.8%, which was in line with expectations. Sales are still up a solid 7% year over year.
The median new house price was reported at $342,000, which was up nearly 9% year over year. There were 332,000 new homes on the market last month, representing at 5.9 month’s supply, down from 6.
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