4/27/21 – EconUpdate by P. Duffy

EconUpdate by P. Duffy

New home sales surge to highest level since August 2006

What does this mean?  The strongest market since 2006 fueled by pent-up demand and low mortgage rates continues.

Sales of new single-family homes in March rose nearly 21 percent from February to an annual rate of 1.021 million, the highest rate since August 2006. They were also up nearly 67 percent from March 2020.  Months of inventory fell from 4.4 months to 3.6 months during March and matching January’s levels

https://www.census.gov/construction/nrs/pdf/newressales.pdf

Preliminary April PMI Output Index reaches highest level since October 2009

What does this mean?  The U.S. economy continues to reopen quickly for both manufacturing and services.

The IHS Markit Flash U.S. Composite PMI Output Index posted 62.2 in April, up from 59.7 in March, to reach the highest since data collection began in October 2009. A steep upturn in manufacturing production occurred despite unprecedented supply chain disruptions, while services activity growth hit a new high.

https://www.markiteconomics.com/Public/Home/PressRelease/22fc73216cf444c9b5443bb2a535091e

Redfin:  Homes sell at their fastest pace on record, with nearly half off-market within one week

What does this mean? Low mortgage rates, falling listings and pent-up demand continue to push up prices.

For the 4-week period ending April 18, the median home-sale price increased 18% year over year to $344,625, an all-time high, and 45% of homes sold for more than their list price, an all-time high. Homes that sold during the period were on the market for a median of 21 days, the shortest time on market since 2012.  Compared to the same period of 2019, pending home sales were up 23%, and active listings fell 47% to a new all-time low.

https://www.redfin.com/news/housing-market-update-home-prices-up-18-pct/