By Tim McLaughlin, Senior Vice President, Weichert Financial Services
CoreLogic, a leading provider of information, analytics and business services, released its May Home Price Index (HPI) last week which shows that home prices in the US increased on a month over month basis. According to the CoreLogic HPI, national home prices, including distressed sales, increased by 0.8% in May 2011 compared to April 2011, the second consecutive month over month increase.
“Two consecutive months of month over month growth and continued relative strength in the non-distressed market segment are positive seasonal signs in the housing market. Slowly declining shadow inventory and stabilized negative equity levels are also positive signs,” said Mark Fleming, chief economist for CoreLogic.
Leading the way in our footprint was a 4.4% increase from April to May in New York.
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development (HUD), has urged Americans to purchase homes. In an interview broadcast Sunday on CNN’s “State of the Union,” Donovan insisted that the housing market was showing signs of improvement.. “Housing is more affordable than it’s been in a generation,” Donovan said. “In the long run, it is a good time to become a homeowner because it’s so affordable today, compared to where it’s been for generations.”
As we enter the second half of 2011, rates continue to be at lower levels then where we started the year, still trending not much higher than historical lows (albeit they have inched up in the past couple of weeks). Things to watch for to see how rates trend in 2H11:
– How will the end of the Fed Purchase Program impact supply/demand?
– What will be the end game for Greece (Portugal, Ireland), and how will that impact the global economy?
– What does the employment picture look like as the year progresses? Is there improvement on the horizon?
– Does the economy pick up steam or plod along?