Back in February, we boldly announced the potential end of home price deflation in the United States for as early as 2009. At that time, the call was seen as more than daring. What a difference six months can make.
Today, our call no longer seems so farfetched. Data, on resale of existing single-family homes, released this morning showed a third straight monthly gain. This is the best sequence in more than five years
(early 2004). Although level of resale activity remains relatively low on an historical basis, the last three months rebound in sales has nevertheless brought down the month’s supply of single-family homes to its lowest level since early 2007 (seasonally adjusted). At the current sales pace, it would take 8.5 months to sell all single-family homes currently on the market place. Current inventories are now in the neighbourhood of levels not normally associated with falling home prices. For the first time in three years, the conditions in the housing market have improved to the point where the end of home price deflation is really in sight. This, along with the revival of the stock
market, is exactly what the American consumer needs to regain confidence and put an end to its consumption spending pullback.
National Bank Financial Group
And from Raymond James & Associates:
Sales have improved despite appraisal issues surrounding the Home Valuation Code of Conduct (HVCC) which according to a June National
Association of Realtor survey, have caused 37% of realtors to lose at least one sale. Thus, if these reports are taken at face value, it is
possible that today’s sales figure may actually be understating the true level of homebuyer interest in the market place.
Related posts:
- HOUSING WATCH: Housing inventory overhang is disappearing
- HOUSING WATCH: US Home Price Deflation Finally Ebbing
- HOUSING WATCH: March Existing-Home Sales Slip but First-Time Buyers Rise
- HOUSING WATCH: CALIFORNIA: Sales Trends and Price Declines Continue to Moderate in April
- HOUSING WATCH: FLORIDA: Price Declines Continue; Distressed Inventory Looms
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