Power Tools on the Housing Market

The housing market continued to cool off in recent weeks, with May existing home sales decreasing a slight 1.2 percent from April. "There's now a clear pattern of slower home-sales activity in many higher cost markets, which are more sensitive to rises in interest rates, and higher home sales in moderately priced areas which have experienced job growth," said NAR chief economist David Lereah. In areas hit hardest by the slowdown, sellers are having to readjust their expections as homes are taking longer to sell and local inventories build up, making price reductions and incentives a more common sight. And with interest rates on the way up, "things are likely to get worse for sellers before they get better," predicts Bloomberg News.

Posted on June 29 at 10:08 AM | Permanent Link | Add a Comment (0) | TrackBacks (0)

Rising interest rates and increasing energy costs put the squeeze on the housing boom in 2005, says a new report from Harvard University's Joint Center for Housing Studies. More people are stretching to be able to purchase a home and afford the mortgage, but the housing market continues to benefit from strong job growth, a recovering rental market, good home price appreciation, and other factors. "As long as these positive forces remain in place, the current slowdown should be moderate," says the Joint Center's The State of the Nation's Housing 2006. For those not already familiar with it, the Joint Center's annual report is an excellent overview of the housing market and the demographic, economic, and political forces that shape it.

Posted on June 19 at 12:28 PM | Permanent Link | Add a Comment (0) | TrackBacks (0)