This Week in Real Estate with Jason Waugh: Dec. 5, 2016

image001Home price appreciation has been a consistent story in real estate the past 3 years, so it was simply a matter of time before the data supported findings similar to the ones reported This Week in Real Estate. Case-Shiller released their National Home Price Index on Tuesday concluding the Index reached an all-time high at the end of the third quarter. Below are a few highlights from the final week of November that influence our business:

* Case-Shiller National Index at New All-Time High. Home prices finally surpassed all-time highs set in July 2006 as the housing boom topped out. According to the latest data released Tuesday by the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. census divisions, recorded a 5.5% annual gain in September, up from 5.1% last month. Seattle, Portland and Denver were again the cities in the 20-City Composite with the highest rate of annual appreciation. Seattle led the way with an 11% year-over-year price increase, followed by Portland with 10.9%, and Denver with an 8.7% increase.
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* Consumer Confidence Now Back to Pre-Recession Levels. With the ongoing job and economic growth, in November consumer confidence improved. Consumers were optimistic about the current situation and the near term outlook. The Conference Board reported that the Consumer Confidence Index jumped to 107.1 in November, from an upwardly revised 100.8 in October. Both the present situation index and the expectations index rebounded. The present situation index increased to 130.3, from 123.1 and the expectations index hit 91.7, up from 86. This brings the index back to pre-recession levels. The index stood at 111.9 in July 2007. “A more favorable assessment of current conditions coupled with a more optimistic short-term outlook helped boost confidence,” said Lynn Franco, The Conference Board director of economic indicators.
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* Pending Home Sales Maintain Pace. The Pending Home Sales Index increased a slight 0.1% in October, but was 1.8% higher than last October. The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts reported by the National Association of Realtors (NAR), increased 110.0 in October from a downwardly revised 109.9 in September. The PHSI increased 1.6% in the Midwest, 0.7% in the West, and 0.4% in the Northeast, but fell 1.3% in the South. Year-over-year, the PHSI increased in all regions, ranging from 3.9% in the Northeast to 0.8% in the South. Commenting on the continued tight supply of homes for sale, NAR reported that 40% of October sales were at or above list price, compared to 33% last October.
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Have a productive week.

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