As reported previously, housing data continues to show strong improvement.
Pending home sales have hit the highest level since 2010, up 5.9% in May. The increase covers almost all regions of the country.
Home builder stocks continue to rise. Commodity prices have recently dropped, helping to reduce some of the costs associated with new home construction.
In Northern Virginia, we continue to see supply shortages. Despite this, sales are up in most regions. Much of the existing inventory is on the market at “wish list” pricing, and existing inventory could approach zero if these sellers reduced prices to current market. But do you blame them for reaching for higher price levels in a market which is trending up in price so strongly?
Appraisals are beginning to catch up with new market reality, and not lagging price hikes as badly as they had been.
This continues to look like the early stages of a price rebound, not an aberration.