Home prices are increasing nationwide, and the housing market is improving. The July FHFA house price index increase of .3 percent from June provides further evidence that the housing bottom is in place. This makes the third consecutive month over month increase.
Along with the positive news we have seen from other reports, such as New Home Starts and Permits, the NAHB Builder Confidence Index, the S&P/Case-Shiller Home Price Index, the NAR Existing Home Sales Report and New Home Sales, this adds to the argument that housing has begun to improve. We have an "inflection point" in new residential construction, but we haven't reached the "tipping point" yet. August reports from the NAR on existing home sales will be released today and the new home sales report from the Census Bureau will be released on tomorrow. We will see how things shape up here in Georgia when the ground dries out from all of the flooding. Lumber and building materials have yet to show major influence from the underlying fundamental increases in housing. Excess mill capacity will need to be reduced for upward price pressure to resume.
No comments:
Post a Comment