Triangle home sales up
Posted December 9, 2011
A quiet week for economic reports, but truly it’s all about jobs right now.
The November jobs report showed us that we’re finally heading in the right direction as it relates to lower unemployment figures – giving us an 8.6 percent unemployment rate for November.
October new home sales were up 1.3 percent, but the most recent S&P Case-Shiller Home Price Index showed a 3.9 percent decline for the third quarter in year over year data – that number continued the declining trend from the 5.8 percent decline of the second quarter of 2011. Only two MSA’s – Washington, DC and Detroit – had positive movement. Everyone else was in the red.
I can tell you however, that Triangle purchases are trending well for the end of the year, as we’re seeing pockets of success with purchase contracts coming in for December and for 2012 as well.
cConsumer Confidence is up sharply from the October figure of 40, coming in at 56 which was much higher than the expected reading of 42 for November as consumers show a greater level of confidence towards job prospects and the economy. This pent up demand for spending, while perhaps temporary due to the holidays, is just what we need right now.
Housing should be well positioned for growth going into 2012 here in Triangle, of course, depending on whom you ask. But let’s look at some positive fundamentals right now: the job numbers are improving, housing inventories are at healthy levels in many markets and some markets are even experiencing shortages in certain price points.
Consumers have a greater level of confidence as we head into the holiday season – and interest rates simply couldn’t be better – making home affordability the strongest it has been in quite some time.