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Must-know: Why existing home sales rose in June to 5.04 million
At the end of June, there were 2.3 million existing homes for sale, representing a 5.5-month supply. This is higher than the 2.16 million homes for sale last year.
Building permits cover the number of privately owned housing units that were issued permits in a given period.
Mortgage REITs, like NewCastle (NCT) and PennyMac (PMT), as well as homebuilders, like Lennar (LEN), Standard Pacific (SPF), and KB Home (KBH), pay close attention to real estate values.
Housing starts fell from a downward revised 985,000 to 893,000. Multi-family starts were 305,000 in June—a decrease from the 344,000 pace in May.
There are many reasons why a region may outperform another region. The biggest reason is usually the underlying performance of the economy.
In May, home prices rose 0.4% month-over-month. They’re up 5.5% year-over-year. Prices are now within 6.5% of their April 2007 peak.
Overall increases in consumer sentiment, however modest, are starting to drive more business for homebuilders like Lennar (LEN).
The average 30-year fixed-rate mortgage increased three basis points to close at 4.27%. The ten-year yield fell seven basis points and the To-Be-Announced (or TBA) market rallied.
Builders are in a good position right now, with tight inventory. They’re able to increase margins and drive revenue by increasing prices.
The index basically showed strong growth in the Philadelphia Fed region. This area includes eastern Philadelphia, Delaware, and southern New Jersey.
Consumer sentiment is a critical factor in risk-taking. KB Home (KBH) cited consumer confidence as a more important variable than interest rates.
Industrial production increased 0.2% in June, and May was revised downward to 0.5%.
While the Great Recession was caused by excess debt, business inventories are still important to watch.
Manufacturing jobs are extremely important to the U.S. economy.
The General Business Conditions Index maintained last month’s gain and closed at +25.6.
The economic recovery has been subdued because housing construction has lagged.
At the end of the day, whether we want to admit it, a home is an investment.
Over the past year, the percentage of people who think home prices will increase fell from 57% to 46%.
Just under half of all states are judicial, but they’re concentrated at the top of the non-current leader board.
Increases in foreclosure activity correlate with lower home prices because distressed properties tend to trade at a discount to non-distressed properties.