Every month, a number of reports about the housing market are released by a variety of sources. Most widely watched is the S&P/Case-Shiller Price Index,?but that is also one of the least timely reports available. Collecting data on home prices takes time and that report is delayed by two months as the data is accumulated through mining court records and thousands of databases around the country.
Case-Shiller also ignores new home sales, relying on matched pairs of sales to create the price index. There are advantages and ?disadvantages to this approach. One of the disadvantages is that new homes can be a leading indicator of the home market.
How new home sales are accounted for
New construction is tracked by the US Department of Commerce. In the most recent announcement, they reported that total housing starts increased to an annualized level of 717,000 units in April. This is a significant improvement from the lows below 500,000. The improvement has been gradual, a sign of sustainable growth, rather than a bubble-like jump.
Home construction has been steady at around 600,000 units a year over the past couple years. After reviewing the latest data, Well Fargo Economic Research commented that, ?While modest, there is real improvement taking place in the housing market.?
The argument for recovery is supported by a separate report that shows the National Association of Homebuilders Housing Market Index?has?increased to a five-year high. The number of building permits issued, an indicator of future activity in the housing market, has also been moving higher since September 2011.
Taken together, there are now a number of signs that the worst is behind us in home prices and although the recovery may not be as fast as most home owners would like to see, there probably won?t be any more steep declines.
Even with the improvement, it is a still a buyers? market in much of the country. Sellers may be finding that they can sell their home, but that prices are far lower than they would like to sell at. Home owners that are at least 62 years old can use a reverse mortgage to wait out the market.
These loans allow home owners to take money out of their homes now without creating an additional monthly bill. Reverse mortgages allow home owners to take advantage of any recovery in prices and sell their home later when it is possible to get a higher price.
Leo is an avid patroller of the mortgage, reverse mortgage, and retirement industry! Leo enjoys keeping up to date and reporting on important issues that are in the news. He also likes educating people on how both the traditional and reverse mortgage industry works
Leo Franklin
Related posts:
- Housing Reports Shows Signs of a Slow Recovery
- Home Price Recovery Will Take Years
- Home Market Recovery Could Be Underway
- Foreclosures Will Continue to Weigh Down Housing Recovery
- Experts Think Bottom Near in Housing Prices
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