Home Price Gains Slow
In October, the Case-Shiller U.S. National Home Price Index, which covers all nine census divisions in the United States, climbed 19.1 percent on an annual basis. In September, the yearly gain was 19.7%. The 10-City Composite was up 17.1 percent year over year, down from 17.9 percent the previous month, and the 20-City Composite rose 18.4 percent year over year, down from 19.1 percent the last month.
While prices rose in October, they did so at a slower pace. According to Craig J. Lazzara, Managing Director at S&P DJI, October’s gains were lower than September’s, while September’s gains were lower than August’s in all three indices. “We have previously suggested that the strength in the U.S. housing market is being driven in part by a change in locational preferences as households react to the COVID pandemic. More data will be required to understand whether this demand surge represents an acceleration of purchases that would have occurred over the next several years or reflects a more permanent secular change.”
Pending Home Sales Slip in November Amid Hot Housing Market
In November, pending home sales, a leading index of the housing market’s health fell short of forecasts. The National Association of Realtors (NAR) Pending Home Sales Index, which counts the number of properties under contract to be sold, fell 2.2 percent in November from October. According to Bloomberg consensus forecasts, analysts projected a 0.8 percent gain in revenue.
“Buyer competition alone is unrelenting, but home seekers have also had to contend with the negative impacts of supply chain disruptions and labor shortages this year,” NAR Chief Economist Lawrence Yun said in a statement. “These aspects, along with the exorbitant prices and a lack of available homes, have created a much tougher buying season.”
Housing demand remains high, according to Yun, who added that homes on the market for sale go from “listed status” to “under contract” in around 18 days.
Next week’s potential market-moving reports are:
- Monday, January 3rd – Construction Spending
- Tuesday, January 4th – Job Openings
- Wednesday, January 5th – ADP Employment Report, FOMC Minutes
- Thursday, January 6th – Initial Jobless Claims, Continuing Jobless Claims
- Friday, January 7th – Unemployment Rate, Consumer Credit
As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (800) 216-1047.
