Carpe Diem

November home sales are coming in strong, this is what a housing recovery looks like

Many areas are reporting strong increases in November home sales, providing further evidence that a housing recovery is underway, here’s a sample:

Update/Breaking: Southern California’s housing market surged again last month, with the number of homes sold climbing more than 14% from a year earlier to their highest level for any November in six years. It was the 11th straight month of year-over-year increases. The median home price for the region was $321,000, up from $315,000 the two prior months and a nearly 17% increase over $275,000 in November of 2011.

1. Baltimore-area home sales rose 24% in November compared to last year, while median sales price increased 3.5%.

2. November home sales in the Washington, D.C. area increased by 21.5% compared to last year, median sales price increased 10.4% to highest November price since 2007.

3. Milwaukee-area home sales increased 24.2% in November, median sales price by 5.2%.

4. Des Moines home sales in November increased 20% from last year, while the average sales price increased by 10%, and sales volume by 32%.

5. New home sales in November in the Sacramento area were the highest since 2008.

6. Albuquerque home sales in November increased by 12.2% versus last year, median price increased 3.1%.

7. Savannah home sales increased by 31% in November compared to last year, average price jumped 30.2%.

8. Home sales in the Birmingham area increased 6.5% in November, median sales price increased 13.6%.

9. Pending home sales in Massachusetts were up 28.2% in November compared to last year, marking the 19th consecutive month of year-over-year increase in pending home sales.

Related

10. Lumber prices continue on an upward trend, with spot prices for framing lumber ($362 per 1,000 board feet) and futures prices for CME lumber contracts ($345.60) rising close to 7-year highs last week.

Bottom Line: The ongoing increases in home sales month and after month, along with increases in both average and median home prices point to a U.S. housing recovery that is real, robust and sustainable.

 

18 thoughts on “November home sales are coming in strong, this is what a housing recovery looks like

  1. i’m not quite sure what to make of this recovery.

    prices are up 2-3% (using the better indexes like cs) and volumes seem to be up in the 11% range yoy, both of which seem like good news and a sign of recovery.

    however, in comparison to the drop in both price and in existing home sales, this recovery is quite mild.

    prices dropped 30-40% (from admittedly frothy peaks). at 3% increases, it will take a decades to make that back.

    volumes dropped from 7 million at the peak and, even if we assume that those were frothy levels and that the 5.5mm numbers were more typical, at 4.5mm it’s going to be another 2 years to get back to those levels even holding the current double digit rate of increase.

    i think there is little doubt that the housing market looks a lot better than last year, i’m just not sure how good it is.

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