National Real Estate News

Last Monday we heard the good news that New Home Sales blasted UP 11% in June, their largest one-month gain in almost nine years! The annual rate of 384,000 came in higher than any of the 63 economists making a forecast predicted. After bottoming in January, new home sales are UP 17%, while existing home sales are UP 9%. New home inventory figures were even better, down to 8.8 months from their 12.4 month high in January. Experts now say some growth in home construction should begin later this year. And remember, new home sales are still well below their long-term trend of around 950,000 per year, so they should continue to move up for the next few years.

But here's our favorite news of all. Tuesday the Case-Shiller index reported US home prices rose in May on a month-to-month basis for the first time since July 2006. Prices were up an average of 0.5%, thanks to increases in 13 of the 20 selected cities in their index. So, this most pessimistic of the home price indexes is finally showing that prices may be turning around! Excellent. Finally, loan workouts done in the HOPE NOW alliance were up by 25% for June, exceeding the number of foreclosure starts for the first time since April.

~ Courtesy of Chuck Chrobak, Golf Savings Bank, CChrobak@GolfSavingsBank.com, 425.330.9657