The Salmans Group National Market Update

A Snapshot of Monthly Housing Indicators

Pending Home Sales Index

Pending Home Sales maintained their uptrend in August. NAR’s pending home sales index posted a reading of 103.8 for the month – a 6.4% increase from July’s 97.6 and 12.4% above the reading in August of 2008. August’s pending home sales index is the highest index since March of 2007 and the seventh consecutive month in which the index rose. On both a month to month and year over year basis, pending sales were up in every region of the country.

Existing-Home Sales

Existing-home sales slipped 2.7% in August to a seasonally adjusted annual rate of 5.10 million units – 3.4% above their ales level in August of 2008. The national median sales price for n existing home was $177,700. The inventory of existing homes available for sale at the end of August fell to 3.62 million units – an 8.5-month supply at the current sales pace.

New-Home Sales

New home sales rose slightly in August, posting a seasonally adjusted annual rate of 429,000 units – 0.7% ahead of July’s revised rate of 426,000. New home inventory continued to decline to a 7.3 month supply at the current sales rate. That is down 3.9% from the previous month and more than 34% off its year-ago level

Housing Starts

Housing starts also posted a small increase in August, registering 598,000 units – up 1.5% from July’s level of 589,000. Despite the rise in August, starts were still 29.6% below their level a year ago. Building permits – generally a reliable indicator of future starts – posted a seasonally adjusted annual rate of 579,000 – 2.7% above July’s level.

Housing Affordability

Housing affordability continued at very healthy levels. NAR’s Housing Affordability Index (HAI) posted a reading of 159.1 in August – up from July’s reading of 155.5 and significantly higher than the 125.8 reading in August of 2008.

Mortgage Rates

Mortgage rates declined in September. The average 30-year fixed mortgage rate for the month was 5.06%, down from the average 5.19% in August and almost a full percentage point lower than in September of 2008. While slight upticks are possible, interest rates are expected to remain exceptionally low throughout the rest of this year.

Employment

The economy shed 263,000 jobs in September – a larger number than anticipated and a sign that despite other encouraging figures on the economy, the job market remains a drag on a more robust economic recovery. The unemployment rate rose to 9.8% – its highest level since June of 1983.

Economic Growth

The U.S. economy showed some improvement in the 2nd quarter of this year. Real GDP growth registered -.7% -- a significant increase from the -6.4% figure in the 1st quarter Going forward, GDP growth should turn positive in the 3rd quarter, but consumer spending activity may be tempered by the still-worrisome job market.

http://www.realtor.org/press_room/news_releases/2009/10/streak_continues

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