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U.S. Pending Home Sales Slip In June

U.S. Pending Home Sales Slip In June

Washington (AFP) — U.S. pending home sales slipped in June, the first decline after three months of gains, the National Association of Realtors said Monday.

The NAR’s pending home sales index fell 1.1 percent in June to 102.7.

The decline in the forward-looking indicator, which is based on contract signings, was modestly stronger than analysts’ consensus estimate of 0.8 percent drop.

It followed a 6.0 percent jump in May that pushed the index above 100 — considered an average level of contract activity — for the first time since last November.

“The data will keep open the debate over whether the recovery in housing is getting back on track. We believe it is, but reports are clearly still mixed,” said Jim O’Sullivan, chief U.S. economist at High Frequency Economics.

Lawrence Yun, NAR’s chief economist, said that the steadying housing market faces a number of challenges holding it back from its full sales potential.

“Activity is notably higher than earlier this year as prices have moderated and inventory levels have improved,” he said in a statement.

“However, supply shortages still exist in parts of the country, wages are flat, and tight credit conditions are deterring a higher number of potential buyers from fully taking advantage of lower interest rates.”

Still, Yun predicted a “slight uptick” in sales during the second half of the year as the supply of houses on the market grows, putting a damper on price increases.

For 2014, he projected existing-home sales, which account for most of the US market, will fall 2.8 percent to 4.95 million, from 5.1 million in 2013.

NAR predicts US existing-home prices will increase by 5-6 percent this year and in 2015.

AFP Photo/Justin Sullivan

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U.S. Home Price Growth Brakes In April

U.S. Home Price Growth Brakes In April

Washington (AFP) — U.S. home price gains slowed sharply in April, providing fresh evidence of a weakness in the housing market recovery, the S&P Case-Shiller index showed Tuesday.

The 20-city index of home prices rose at an annual rate of 10.8 percent in April, following the 12.4 percent growth rate posted for March. Month-over-month, the index rose 1.1 percent.

The slowdown was seen in 19 of the 20 cities, with three California cities — Los Angeles, San Diego, and San Francisco — posting hefty price drops of about three percentage points, year-on-year.

Boston was the only city where the price gains picked up pace.

The slowdown was stronger than expected. Analysts on average estimated the 20-city index would post an annual pace of 11.6 percent.

David Blitzer, chairman of the index committee, said that although the annual gains weakened, the month-over-month numbers were strong.

Five cities — Atlanta, Boston, Chicago, San Francisco, and Seattle — had monthly gains of at least two percent.

“Near-term economic factors favor further gains in housing: mortgage rates are lower than a year ago, the Fed is expected to keep interest rates steady until mid-2015, and the labor market is improving,” he said.

“The question is whether housing will bounce back before the Fed begins to tighten some time next year.”

AFP Photo/ Scott Olson

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U.S. New Home Sales Hit Six-Year High

U.S. New Home Sales Hit Six-Year High

Washington (AFP) — Sales of new homes in the United States in May hit their highest pace since the market crashed six years ago, as the industry pulls out of the winter lull.

Sales picked up to an annual pace of 504,000 units, compared to a 425,000-unit pace in April, and were nearly 17 percent higher than a year ago, the Commerce Department said Tuesday.

The median price of new homes sold rose as well, hitting $282,000, compared to $263,700 in May 2013.

But the stock of homes on the market tightened, with a 4.5-month supply, compared to 5.3 months in April.

Jim O’Sullivan, an economist with High Frequency Economics, said the jump in sales was much larger than expected, and although the data is volatile, it adds to other signs of a pickup in the real estate sector.

“The housing recovery appears to be getting back on track,” he said.

AFP Photo / Joe Raedle

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