Taylor Scott International News
Pending home sales in the United States were mostly unchanged in December, but inched forward slightly, fuelled by a large increase in the Northeast that outpaced declines in the other three major regions. The latest index from the National Association of Realtors increase by just 0.1% month on month and is now 4.2% above December 2014, the 16th month in a row that it has risen. ‘Warmer than average weather and more favourable inventory conditions compared to other parts of the country encouraged more households in the North east to make the decision to buy last month,’ said Lawrence Yun, NAR chief economist. ‘Overall, while sustained job creation is spurring more activity compared to a year ago, the ability to find available homes in affordable price ranges is difficult for buyers in many job creating areas. With home building still grossly inadequate, steady price appreciation and tight supply conditions aren't going away any time soon,’ he added. According to Yun, although healthy labour market conditions will persuade more households to buy, it's possible overall demand could be somewhat curtailed in coming months. The stock market's sizeable losses since the start of the year and the effect slowing manufacturing activity is having in some areas, especially in the energy sector, could cause some to hold off on buying. ‘The silver lining from the market turmoil in recent weeks is the fact that mortgage rates have slightly declined. Buyers looking to close on a home before the spring buying season begins may be rewarded with a mortgage rate at or below 4%,’ Yun explained. Existing homes sales this year are forecast to be around 5.34 million, an increase of 1.5% from 2015. The national median existing home price for all of this year is expected to increase between 4% and 5%, down from the 6.8% in 2015. Rents, which have far outpaced wages in recent years, are expected to slightly slow to 3.3% growth in 2016 from 3.6% a year ago. Multifamily housing starts are expected to reach 420,000 units this year, the highest level since 1987. A breakdown of the data shows that the data increased 6.1% in the North east in December, and is now 15.3% above a year ago. In the Midwest the index decreased 1.1% to 103.6 in December, but is still 3.6% above December 2014. Pending home sales in the South declined 0.5% to an index of 119.3 in December but are 1% higher than last December. The index in the West decreased 2.1% in December to 97.5, but remains 3.4% above a year ago. Taylor Scott International
Taylor Scott International, Taylor Scott
