Monthly Archives: January 2011

Last week was packed with housing market data and the news does keep getting better even though the media hasn't caught on quite yet. Wednesday saw December New Home Sales UP 17.5%, blowing away forecasts with a 329,000 annual rate. The supply of new homes dropped to 6.9 months and the new homes inventory slid to 190,000, down 66.8% from its 2006 peak and at the lowest level since 1968. More good news came with an 8.5% boost in the median home price versus a year ago, to $241,500, its highest level since April 2008. The average home price registered a 4.7% gain compared to a year ago.

Down in Orlando, Florida, last week there were more housing market forecasts for the year just begun. Bottom line? Housing economists are cautiously optimistic about a recovery during 2011. These economists were presenting their views at the annual meeting of the National Association of Home Builders (NAHB). None of the experts see a robust upturn for housing. But they do feel that home sales, which have been in a bit of a stall, may start to recover soon.

Last week's housing market news featured forecasts for the year. With the factors affecting home affordability at their best levels in years, many expect increased home sales in 2011, spurred on by the expected improvements in the job situation. The National Association of Realtors (NAR) reported existing homes sales up for November, returning to growth after hitting bottom in July. Existing homes are now at their strongest sales pace since the home buyer tax credit expired in April.