Tag Archive for economy

Confidence In Economy Hits Five Year High

February 3, 2014 Housing Market Comments Off on Confidence In Economy Hits Five Year High

Americans grew more confident in the economy in 2013, according to recently released data from Gallup. Though their perception of economic conditions and the future direction of the economy experienced some ups-and-downs throughout the year, Americans were more optimistic than in years past, with gains seen across several key indicators. Gallup’s Job Creation Index, for example, gained two points from its year-before level, while economic confidence rose five points and average daily spending increased to $88, a $16 improvement over 2012. Overall, Americans were more confident in the economy than in the previous five years, which is a positive sign that the economy is recovering from the most recent recession. Still, Gallup warns that it is unclear how strong the economic recovery is due in part to the support its received from the Federal Reserve over the past two years. This year, the Fed will begin winding down some of the economic stimulus that has been keeping interest rates at historic lows and helping boost the economy and housing market. Though this has the potential to drive rates up, the Fed has indicated that it will keep short-term rates low until unemployment drops or inflation becomes a concern. More here.

Upward Price Trend Continues Into Winter

January 29, 2014 Housing Market Comments Off on Upward Price Trend Continues Into Winter

Though prices usually weaken at the end of the year, the most recent S&P/Case-Shiller Home Price Indices show year-over-year increases of nearly 14 percent in both the 10-city and 20-city Composites through the end of November 2013. The gains continue the upward trend of year-over-year improvement that began in June 2012. David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices, said home prices continue to rise despite last May’s jump in mortgage rates. According to Blitzer, mortgage applications for purchase were up in recent weeks which validates home builders’ optimism as seen in the most recent survey from the National Association of Home Builders. Combined with low inflation, homeowners are enjoying real appreciation and rising equity values, Blitzer said. Though home price increases are expected to moderate this year, Blitzer feels housing will make further contributions to the economy in 2014. More here.

Post-Crash Rebound Fuels 2013 Price Gains

January 10, 2014 Housing Market Comments Off on Post-Crash Rebound Fuels 2013 Price Gains

Home prices surged last year but, according to Trulia’s Price Monitor, the increases were a reaction to the housing crash more than the effects of an improved job market and economy. A recent analysis from Jed Kolko, Trulia’s chief economist, explains how the price gains seen throughout 2013 were a direct response to the housing crash. For example, the individual markets that experienced the highest price increases last year were also those that suffered the most severe price declines during the crash. In other words, the markets that had the most ground to make up were the ones with the most significant increases. Now that most areas have largely recovered the losses suffered during the housing crash, price gains should begin to slow. Kolko says – as the housing market continues to recover – factors such as job growth, rather than this recent rebound effect, will lead to more sustainable, and slower, price increases. Trulia’s Price and Rent Monitors measure how asking prices and rents are trending on both a national and local level. In December, home prices were up 11.9 percent over last year and 0.4 percent above the month before. More here.

Job Growth To Drive Housing Market In 2014

January 6, 2014 Housing Market Comments Off on Job Growth To Drive Housing Market In 2014

Industry experts and market analysts expect housing to continue to build on last year’s gains in 2014. Home prices – which rose 11 percent last year – will continue to rise, though at a slower rate. And those price increases will lead to fewer underwater homeowners and, as more homes are put up for sale, improved inventory levels. In addition to rising home values, analysts expect higher mortgage rates in the new year, though they believe it’ll have little effect on buyer demand, which is expected to remain at a healthy level. Celia Chen, an economist at Moody’s Analytics, predicts job growth will spur a surge in new residential construction this year. Chen believes the economy will add about 200,000 jobs a month, leading to greater housing demand and increased homebuilding activity. The spike in new residential construction will lead to even more jobs and support a stronger, growing economy in 2014, according to Chen. More here.

New Home Construction Surges, Signals Stronger Economy

December 19, 2013 Housing Market Comments Off on New Home Construction Surges, Signals Stronger Economy

According to the U.S. Census Bureau and the Department of Housing and Urban Development, new residential construction spiked 22.7 percent in November and is now nearly 30 percent above last year’s level. The increase was the largest since January 1990 and brought housing starts to a seasonally adjusted annual rate of 1,091,000. Despite the improvement, new home construction remains below historical average. From 1959 through 2000, housing starts averaged 1.5 million per year. Still, with single-family housing starts up 20.8 percent month-over-month and demographics and household formation suggesting more growth, new home construction should continue to improve. The gains were better than economists expected and indicate a strengthening economy. More here.

Confidence In Economy Slowly Returning

December 17, 2013 Housing Market Comments Off on Confidence In Economy Slowly Returning

Following the government shutdown in October, Americans’ confidence in the economy tumbled. But ever since that plunge, confidence has been slowly returning. And according to Gallup’s most recent Economic Confidence Index, Americans’ assessment of current economic conditions has almost completely rebounded to levels last seen in mid-September. On the other hand, the index component measuring future outlook, which took a heavier hit during the shutdown, remains 11 points below mid-September levels – though it has recovered 24 points since its post-shutdown low. Gallup’s report says economic confidence should be more positive than negative next year, as long as home and stock prices keep rising and the job market continues to improve. More here.

Americans Cautious But Still Want To Buy

December 10, 2013 Housing Market Comments Off on Americans Cautious But Still Want To Buy

Americans are feeling cautious about their money and the housing market as 2013 comes to an end. Surveyed for Fannie Mae’s November National Housing Survey, nearly two-thirds of Americans said they believe the economy is headed in the wrong direction and that their personal finances will worsen in the next year. Despite the pessimism, however, the housing market is still expected to improve. Doug Duncan, senior vice president and chief economist at Fannie Mae, said caution is the defining feature of Americans’ attitudes toward the economy. In this environment, according to Duncan, the housing market is likely to improve but only at a gradual pace. Still, a majority of Americans said they would buy, rather than rent, if they were to move and 64 percent feel that now is a good time to buy a home. The number of respondents who felt it would be easy for them to obtain a home mortgage rose 4 percentage points to 50 percent. More here.

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