eye on the economy

Eye on the EconomyNew Home Sales Jump in August

October 2, 2014

eyeonhousing.org

New Home Sales2

• New home sales rebounded in August

• Increased 18% to a seasonally adjusted rate of 504,000

• August rate up 33% over August 2013

• Indicative of ongoing recovery

• Read more here

New Single-family Home Inventory3

• Inventory of new single-family homes increased to 206,000 (non-seasonally adjusted)

• 48,000 were completed, ready to occupy residences

• Months’ supply fell to 4.8 months

• Read more here

Mortgage Interest Rates4

• Mortgage interest rates remain historically low

• Average effective interest for new home sales was 4.25% in August

• Read more here

Housing’s Share of GDP5

• Housing’s share of GDP was 15.5%

• 3.1% due to residential construction

• Home building & remodeling

• Read more here

• GDP grew 4.6% in second quarter

• Read more here

Construction Spending6

• Construction spending declined 0.1% in August

• Decline due to weakness in the remodeling sector

• Read more here

Existing & Pending Home Sales7

• August existing home sales down 5.3% year-over-year

• Read more here

• Pending sales fell 1% in August

• Read more here

• Declines suggest withdrawals of investor and cash home buyers

Home Prices8

• Case-Schiller national index was up 5.6% year-over-year in August

• 27th consecutive month increase

• Home prices have risen almost 21% over the last two years

• Read more here

• Household balance sheets improve

• Value of owner-occupied real estate reaching 20.2 trillion in second quarter

• Read more here

State & Local Taxes9

• Rising prices have increased property tax revenue

• Reached a $493 billion annual rate for all property sources

• Property Taxes make up 40.3% of state and local tax receipts

• Read more here

Population Survey10

• Workers under 35 realized income gains in 2013

• In 2012 experienced an almost 1% drop in median income

• Same cohort experienced a 1.1% increase last year

• Surveys show homeownership is an important goal for Millennials

• Despite being delayed

• Read more here

Mixed Readings on Consumer Confidence11

• In September, Thomson Reuters/University of Michigan measured an increase in consumer sentiment

• Read more here

• The Conference Board Consumer Confidence Index declined

• Due to concerns about current and future employment conditions

• Read more here