INFO THAT HITS US WHERE WE LIVE…

by Gary Peruzzini

We keep hearing concerns that tight existing home inventories and rising prices will shrink sales, but the latest data lays those worries to rest. October Existing Home Sales increased 2.0%, to a 5.48 million annual rate. Sales grew in every major region, with single family homes leading the way, although condos/coops went up a bit too. Yes, sales are down (less than 1%) versus a year ago, but we’re still seeing the effects of Hurricanes Harvey and Irma, which sidelined home buyers. Once we start getting reports not colored by these storms, many expect an upward sales trend.

Nearly half the homes sold In October were on the market less than a month, indicating demand is there. This is put to increasing incomes, a strengthening economy, near historically low mortgage rates and a growing appetite for home ownership. Freddie Mac’s November 2017 Outlook expects this to be the best year for housing in a decade, with 6.13 million homes sold and 1.2 million housing starts. Their chief economist said, “construction will gradually pick up, helping to supply more homes in inventory-starved markets.” The Fed’s latest data reveals home equity hit $13.9 trillion in mid-2017, an all-time high.

BUSINESS TIP OF THE WEEK… If there aren’t enough hours in the day for everything you want to

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