August 26, 2013 – Post No. 26 – It has been awhile since I presented any housing statistics. I am sure everyone is busy and you hear a lot of different stats flying around. Here is a brief list so you can have pertinent data in one spot:
- According to the Census Bureau, the median sale price of a new home was $257,200 and the average was $322,700 – July 2013.
- At the top of the housing bubble 40% of new homes sold over $300k, in January 2009 this declined to 20%, and currently has rebounded to 38%.
- New home sales in July were 394,000 down from 455,000 in June (which was revised down from 497,000) and 439,000 in May (revised down from 459,000).
- The New Homes Months of Supply increased to 5.2 in July from 4.3 in June. The record high was 12.1 months in January 2009.
- The S&P/Case-Shiller Price Index comes out this week and is expected to show a 12%+ increase in the past year.
- Mortgage Rates are back to 2011 levels. ((Note: Another 100bp increase and they will be at 2009 levels.))
The above data is both good and bad. Prices are doing well. But, higher interest rates may be slowing down sales – remember, this only affects us normal people. Private equity investors buy all cash, so they care less about mortgage rates. Supply had reached record lows only seen in 1968, 1971, and from 1997-2006. Obviously it only had one to go, so the increase is not a surprise. Six months is considered healthy, so this stat is still in good shape.
Just so you know that the rich are doing fine, a 57-story condo building is under construction in Miami that is equipped with a car elevator that will transport the owners’ vehicles right into their units. Prices start at $4.9 Million and top out at $32 Million. I can’t wait to see my wife’s face when I tell her we can park my car in our bedroom, if we buy one of those units:)
I conclude this week with a quote that I just couldn’t let go. Due to the topic, I want to say neither me nor CES are expressing any opinion about marijuana.
“That’s not a negative, nor is it something I’ve ever hidden. It means I know marijuana, I know logistics.” – Hemp CEO Bruce Perlowin on why being a convicted pot smuggler is a plus in his new career.
Am I the only one who can picture an upcoming UPS commercial on logistics being about how it helps the Hemp company with its deliveries?
Happy National Dog Day, ((See Below))
George R. Mann, CRE, FRICS, MAI
Collateral Evaluation Services, LLC
As I am a HUGE dog lover and this is National Dog Day, I wanted to provide some more info about the day and wish all my past buddies the best in doggie heaven (R.I.P. Tipper, Sheba, Sparky, Sampson, Captain, and Wiggles):
When : Always August 26th
National Dog Day has two goals: to honor dogs, and to rescue dogs from homelessness and abuse. It’s an opportunity for us to recognize and appreciate the value and importance of dogs in our lives.
This day is intended to honor dogs for all that they do for us. In addition to giving love and companionship, dogs help us out in countless ways. They are watchdogs for our safety. They lead the blind. Dogs aid in search and rescue, and they seek out bombs and drugs.
The second goal of National Dog Day is to rescue dogs in need. On occasion, dogs need us to save them from homelesness and abuse. The goal of the National Dog Day foundation is to rescue 10,000 dogs a year. Lend a hand to help a dog in need today, or any day.