National Real Estate News

Last week began with somewhat tepid housing news, as starts were reported down 1.0% for July. But once again, the decline was all due to a drop in the volatile multi-family part of the market. In fact, single-family starts actually increased 1.7%, gaining for the fifth month in a row and now up 37.3% since February! Likewise, building permits for single-family homes were UP 5.8% for July, gaining for the fourth month in a row! The National Association of Home Builders chimed in with their builders' confidence index at a new high of 18.

We ended the week with existing home sales UP 7.2% in July to a 5.24 million annual rate. This is the fourth month in a row of gains and the biggest one since the mid-1990's. Sales are now HIGHER than a year ago and that's the first time we've seen that since 2005. Since the January low, overall sales are UP 17%. Experts say housing will recover when there's a bottom in sales, a bottom in building and a bottom in prices. Well, sales and starts have now been UP for several months. Some observers estimate national average home prices are at or even below fair value and should therefore bottom by year end, with many areas likely to see prices inch upward very soon.

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