National Real Estate News...

We continued to have encouraging housing news, starting with Existing Home Sales up 2.4% for May to a 4.77 million annual rate. This was the third month in a row of increased sales, which are now 6.2% above their January low. And the percent increase for the last two months is the largest since April 2004. The existing homes supply decreased to 9.6 months from April's 10.1 months. The median price of an existing home INCREASED to $173,000.

Next we saw new home sales at a 342,000 annual rate for May, with the supply dropping to 10.2 months from April's 10.4 months. New home inventories are now at 292,000, down 49% from their mid-2006 peak and at their lowest level since 2001. Sales were down slightly for the month, but still above their January low. The 111,000 new homes for sale still under construction are at their lowest level since 1970. The 135,000 completed new homes for sale are the lowest level since 2006. The Mortgage Bankers Association reported purchase loan applications UP 7.3%!

Last week we reported the housing market needs to get back to 1.6 million starts a year just to meet knock-downs and population growth. A new Harvard University report heartily agrees. It says there will be millions more echo boomers than there were boomers who first grew the housing market. The report projects household growth between 12.5 and 14.8 million in the next 10 years! The report also notes that price declines and low interest rates have brought affordability to many housing markets.

~ Courtesy of Chuck Chrobak, Golf Savings Bank, 425.893.5723, CChrobak@GolfSavingsBank.com