Mixed News for Single-Family Market
First, today's good news for residential real estate: homebuilder confidence is growing and up four points, to 58, this month after a five-point dip in October. Low interest rates helped explained the surge, reported by the National Association of Homebuilders and Wells Fargo. Prices also plateaued, a relief to buyers after affordability decreased in 3Q. The gauge measures confidence in newly constructed single-family homes, and has hovered above the pivotal 50-point benchmark for five straight months.
Now, the bad news: the AP reports that new home purchases have flat-lined in 2014, growing just 1.7% compared to the comparable period last year, thanks again to unaffordability. While prices have stabilized, they're still rising at twice the stagnant average annual wage increase.