For news yesterday, Existing Home Sales rose to 4.89 million in
May from an upward-revised 4.66 million in April, up 5% on a sequential basis
but down 5% on an annual basis. Total inventory rose 2.2% to 2.28 million homes
which represents a 5.6 month inventory (6 months is considered a
"balanced" level). The median home price rose to 213,400 which is up
5.1% on an annual basis. Distressed sales were 11%, down from 18% a year ago.
The first time homebuyer continues to be MIA, with only 27% of sales going to
first-time buyers. All cash sales were 33%, and median time on market
was 47 days. On a regional basis, the West continues to be soft, with sales
only up 0.9% m-o-m and still down 11.4% y-o-y. This likely reflects the
diminished inventory of distressed properties in the region and stretched
affordability given the sharp gain in prices in much of the U.S.
Tuesday, June 24, 2014
Sluggish Housing Market A Product Of Millions Of 'Missing Households'
There are 2 million "missing households" in
the US - which represents pent up demand for new residences in the US. These
are Millennials who are living with their parents or rooming together in an
apartment. That represents 2 years of housing starts at the current pace. Rents
are increasing, jobs are tough to get, and student debt is high. Fun fact - we
haven't been building this few homes since World War II, according to the NAHB.
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