RISING HOUSING STARTS
June 19th, 2009 categories: Buyer Strategies, Seller Strategies
For many, it was a surprise to see Housing Starts unexpectedly jump in May.
Along with some other data of late, it may be that a recovery of real estate is at least in a very early stage.
For home buyers and home sellers, the immediate impact of more housing starts is on home inventory.
When Housing Starts go up there needs to be a corresponding increase in demand. Otherwise values will get more downward pressure.
At least from my vantage point in the area where I work, I am seeing at least some off-setting demand. There seems to be a shortage of non-distressed properties on the market at the present moment…at least that is what I am seeing. But it’s a complex market, so I don’t offer that as anything more than what I am seeing “on the street.” But at the moment it does feel and look a good bit different that is has been…more stuff is happening.
Looking at the bigger picture, we have home affordability near record-high levels, mortgage rates significantly below historical averages, and on top of that there is the first-time homebuyer tax credit in place,
Additionally, existing Home Sales are up 16 percent on a “raw numbers” basis versus last month and home supplies are lower versus last year.
