House Market

Dated: 11/06/2017

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New home sales jumped 17.0% in September to a seasonally adjusted annual rate of 667,000 units - its strongest pace in almost 10 years. Sales year-to-date are 8.5% ahead of the first 9 months of 2016. 1

The median price of new homes sold in September was $319,700, 1.6% more than the median price of new homes sold in September 2016. 1

Existing home sales rose by 0.7% in September, the first increase in the past four months. On a year-to-date basis, sales in 2017 are up 1.3% relative to the first nine months of 2016. 2

The inventory of existing homes for sale in September dropped 6.4% in September from its year-ago level, to 1.9 million units. For the fifth consecutive month, the months’ supply came in at 4.2 months, meaning that it would take just over four months to completely sell out September’s inventory of homes at the current sales pace. Last year, the months’ supply figure averaged 4.4 months. 2

The median price of existing homes sold in September was $245,100, a 4.2% increase over the median price in September 2016. Over the past three years, the median price has grown at a 5.4% average annual rate. 2

The homeownership rate slipped to 63.8% in the third quarter of 2017, down from 63.9% in the second quarter. A year ago, the home-ownership rate was 63.4%. The rate for those under 35 years old was 35.6% in 2017’s third quarter, up from 35.2% a year ago. 3

The economy grew at 3.0% clip during the third quarter, down from the 3.1% pace of the second quarter. During the eight years of the current expansion, annual economic growth has averaged 2.2%. 4

Productivity rose at 3.0% annual rate in the third quarter, its strongest pace in the last three years. Over the past year, productivity is up 1.5%, relative to an average annual 2.0% growth over the past 20 years. Productivity growth, or increasing amounts of output generated per hour worked, is a fundamental driver of improvements in economic standards of living. 5

The average rate on 30-year fixed-rate mortgages in Freddie Mac’s survey was 3.94% during the week ending November 2, matching the previous week’s average. The rate averaged 3.90% in October and 3.81% in September. All rates quoted have fees and points averaging 0.4% to 0.6% of the loan amount. 6Image title


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