Monthly Archives: June 2015

  Outpacing modest predictions, new U.S. single-family home sales surged 2.2 percent to a 7-year high in May, further brightening the outlook for the housing market and the broader economy. The Commerce Department says new home sales rose a seasonally adjusted annual rate of 546,000 units, the highest level since February 2008. April’s sales pace was revised to 534,000 units from the previously reported 517,000 units. Economists had forecast a mild increase to a 525,000-unit pace in May. The new home sales report added to strong retail sales, consumer sentiment and employment data in the second quarter of 2015, after output slumped at the start of the year. New homes sales surged 87.5 percent in the Northeast, the largest increase since July 2012. Sales increased 13.1 percent in the West, the biggest gain in nine months. In contrast, sales fell...

  April’s gloomy sales bloomed into exciting May numbers released by the National Association of Realtors this week, raising hopes that the housing market is poised for a big second half of 2015. Sales of existing single-family homes, condos, townhouses, and co-ops were up 5.1 percent above April’s numbers to a seasonally adjusted annual rate of 5.35 million units. The previous rate for April was revised up a bit as well, from 5.04 million to 5.09 million units. First-time homebuyers led the way, making 32 percent of recorded purchases, their highest share since September 2012 and 5 percent higher than May 2014. With strong job gains among young adults and the prospect of rising mortgage rates in the near future, more first-timers are deciding to enter the market, and take advantage of low down payment programs. Sales are now at their highest...

Builders are hopeful new housing is due for a strong second half of 2015 after dipping precariously in May. May new home sales fell 9 percent after a 6.8 percent surge in April, but builders believe the weak month was a seasonal snap, and are as confident in new demand as they’ve been in a decade. The National Association of Home Builders and Wells Fargo Bank Housing Market Index (HMI) increased five points to 59 in numbers released June 15, indicating a growing optimism among builders that housing will continue to strengthen in the months ahead. The HMI indices are based on perceptions of prospective buyers visiting job sites and builder offices. Builders believe shoppers are more serious and committed, and recent government data shows new-home sales and single-family construction are gaining momentum. Housing is being buoyed by a strengthening jobs...