Housing reports cause confusion
It is no wonder that people have such a hard time getting a grasp on the housing market. Reports this week, like many others, are mixed. On Tuesday the Associated Press issued a headline stating that. "U.S. home price gains slow in June." Aside from the fact that tomorrow is the first day of September and the article was created in late August this article caused concern for some.
The article ends with; "The Commerce Department said Monday that new-home sales fell 2.4 percent in July to a seasonally adjusted annual rate of 412,000. New-home sales lost much of their upward trajectory toward the end of last year, hurt by modest wage growth and a bump in mortgage rates after the Fed initially signaled a shift in its policies."
Then, on Thursday, that same news service touted; "Contracts to buy U.S. homes rise in hopeful sign." No wonder folks are confused. True, the first article addressed the rate of home appreciation which has slowed from a brisk pace earlier in the year while the second addressed sales.
The fact is, as reported here, that there were few options of homes available to purchase, particularly in the price range traditionally associated with first-time home buyers early in the year. Builders have been busy, not only locally, but across the country and although they are not building at a pace consistent with the feeding frenzy period of the past mid-decade, houses are being built and providing some relief to those hopeful homeowners.
Add to that the interest from existing homeowners who, seeing a brisk market and perhaps the first opportunity in years to take some equity, put their homes on the market late in the season. Locally, these factors have improved our available inventory by 4 percent over July 2013. That is about 300 more homes for sale than at the same time the previous year.
A thinking person would say that would create a slowing in prices as well it may. Our average home price though, is well below the national average and with interest rates still low, there is plenty of incentive for people to buy now, rather than wait for the projected Fed increase in interest rates.
Since this holiday weekend falls at the end of the month it will be a short while before we see our August tallies to know what has happened to our own appreciation in the housing market. You may recall that our July figures were still running ahead of the previous year by 9 percent so that does not reflect the claims made in the AP story about slowdowns seen in June. In the second AP story is the statement; "More Americans signed contracts to buy homes in July, a sign that buying has improved as mortgage rates have slipped, the number of listings has risen and the rate of price increases has slowed."
As far as slowing locally, April appreciation was up 9 percent, May up 10, June up 9 and July up 9 percent. It hardly looks like a slowdown unless you consider the month of May as your benchmark. Not to pooh pooh the national media, but we will always provide you with the latest figures from our area in a timely manner. When things slow down, or pick up, you will find that news here.
Meanwhile, enjoy your holiday and stay safe!
Trust an expert...call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.
Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664.