A few short years ago, housing was considered a headwind to economic recovery. Today, housing is seen as a tailwind to a stalling economy. For the first time since 2005, housing is on track for contributing positively to national GDP in 2012. That can occur either by way of direct residential investment or through remodeling and other ancillary services. Watch for signs of sustained tailwinds in a variety of indicators, including market times, seller concessions, prices and absorption rates.
New Listings were up 4.1 percent for detached homes and 14.9 percent for attached properties. Pending Sales decreased 14.9 percent for single-family homes and 7.5 percent for townhouse-condo properties.
The Median Sales Price was up 10.7 percent to $135,000 for detached homes but remained flat at $95,000 for attached properties. Month’s Supply of Inventory decreased 22.7 percent for single-family units and 24.8 percent for townhouse-condo units.
Sustained recovery will not occur without real employment and wage growth. Consumers must be confident in both the economy and their family finances before signing on the dotted line. Cheap borrowing costs have served as the glue binding things together. Unimaginable a few years ago, the rate on a 30- year fixed mortgage recently ducked below the 3.49 percent marker. Job creation and GDP numbers will garner particular attention this quarter.
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