Tuesday, July 28, 2015

Home Price Growth Remains Solid in May

The 20-City Case-Shiller Composite gained 4.9 percent year-over-year in May, slightly lower than April’s gain. The 10-City Composite gained 4.7 percent from the previous year, slightly higher than the year-over-year gain in April. The National index recorded a 4.4 percent gain on an annual basis, compared to a 4.3 percent annual gain in April.

On a monthly basis, the National index, 10-City Composite and 20-City Composite all posted gains of 1.1 percent.

Of the cities reporting month-over-month increases, Boston, Cleveland and Las Vegas posted the highest gains, each increasing 1.5 percent from April.

San Francisco and Denver posted the highest year-over-year gains, with respective price increases of 9.7 percent and 10.0 percent. Washington, D.C. posted the slowest yearly growth, with prices increasing at an annual rate of 1.3 percent.

Read the S&P/Case-Schiller release.

Monday, July 27, 2015

New Orders for Durable Goods Increased in June

New orders for manufactured durable goods increased 3.4 percent to $235.3 billion in June after declining for two consecutive months, according to the U.S. Census Bureau. The June increase followed a 2.1 percent May decrease. Excluding defense, new orders increased 3.8 percent.

Non-defense new orders for capital goods grew 9.4 percent to $80.8 billion, while shipments fell 0.2 percent to $78.6 billion.

Excluding transportation, new orders increased 0.8 percent. New orders for transportation equipment increased 8.9 percent to $78.4 billion.

Shipments of manufactured durable goods increased 0.1 percent to $239.4 billion after a 0.3 percent decrease in May.

Inventories of manufactured durable goods, up twenty four of the last twenty five months, increased 0.4 percent to $402.3 billion.

Read the Census release.

Friday, July 24, 2015

New Home Sales Slide in June

Sales of new single-family houses fell in June to a seasonally adjusted annual rate of 482,000 according to the U.S. Census Bureau and Department of Housing and Urban Development. The June rate is 6.8 percent below the revised May rate of 517,000, but 18.1 percent above the year-ago rate of 408,000.

New home sales decreased in three of the four regions. Sales in the West and Midwest fell 17.0 and 11.1 percent respectively. Sales in the South fell 4.1 percent, while sales in the Northeast increased 28.0 percent on the month.

The median sales price of new homes sold in June was $281,800, up 0.5 percent from May. The average price was $328,700, down 2.1 percent on the month.

At the end of June, there was an estimated supply of 5.4 months at the current sales rate.

Read the Census release.

Visit the new Banks and The Economy.

Wednesday, July 22, 2015

U.S. Banks Added $48.9 billion in Loans in June

Commercial banks added $48.9 billion in loans and leases in June according to the Federal Reserve’s H.8 statistical release, an increase of 0.6 percent. Total loans and leases increased $25.4 billion (0.3 percent) in May. Total bank assets for commercial banks fell for the second month in a row, declining $16.4 billion (0.1 percent) to $15.33 trillion, but remains 4.6 percent higher than in June of 2014.

Total deposits increased $45.4 billion (.04 percent) to $10.75 trillion, virtually the same as May’s increase.

On the year, commercial and Industrial loans grew $14.6 billion (12.4 percent), real estate loans grew $19.1 billion (4.0 percent) and consumer loans grew $5.2 billion (4.3 percent).

Read the full release here.

Existing Home Sales at Highest Level Since 2006

Existing home sales increased 3.2 percent to a seasonally adjusted rate of 5.49 million in June, according to the National Association of Realtors, up from a downwardly revised 5.32 million in May. Existing home sales have increased year over year for the last nine months.

Median existing home prices increased 6.5 percent year over year to $236,400, the fortieth consecutive month of year over year price increases.

Total housing inventory increased 0.9 percent to 2.30 million existing homes available for sale, up 0.4 percent from a year ago. There is currently a 5.0 month supply of existing homes available for sale, down from 5.1 months in May. NAR President Chris Polychron noted that “[Inventory] conditions are being exacerbated by the fact that some homeowners are hesitant to sell because they’re not optimistic they’ll have adequate time to find an affordable property to move into.”

The percent share of first-time home buyers fell to 2 points to 30 percent in June, but remained higher than in June 2014.

Existing home sales increased in all four regions, rising 4.3 percent in the Northeast, 4.7 percent in the Midwest, 2.3 percent in the South and 2.5 percent in the West. Each region also saw significant year-over-year gains in home prices.

Distressed sales fell 2 points to 8 percent, matching an August 2014 low. Foreclosures made up 6 percent of June sales, while 2 percent were short sales.

Read the NAR release.

Friday, July 17, 2015

Housing Starts Rose 9.8% in June

Housing starts in June were at a seasonally adjusted annual rate of 1.174 million, 9.8 percent above the revised May estimate of 1.069 million and 26.6 percent higher than 927,000 in June 2014. The figure for single family housing was 687,000, 0.9 percent below the revised May estimate.

The housing activity was mixed across regions, rising in the Northeast and South by 35.5 percent and 13.5 percent, respectively, but declining in the West and Midwest by 6.0 percent and 0.7 percent, respectively.

There were 1.343 million (SAAR) new building permits in June, up 7.4 percent from May’s revised level, and 30.0 percent above the June 2014 level. Permits for single family units were at 687,000 (SAAR), 0.9 percent above May’s figure. Multi-family units were at 621,000 (SAAR).
In total, 972,00 (SAAR) houses were completed in June, 6.7 percent below May’s revised estimate, but 22 percent above the June 2014 level.

Read the Census release.

Visit the new Banks and the Economy.

CPI Increased Broadly in June

The Consumer Price Index increased 0.3 percent in June. The rise was broad-based, with increases in gasoline, shelter and food prices. The index rose 0.1 percent over the last 12 months.
The energy index gained 1.7 percent in June, following a 4.3 percent increase in May. Gasoline prices rose 3.4 percent and natural gas gained 3.4 percent, its first advance since December. Electricity prices rose 0.2 percent after declining in May.

Prices for non-food and non-energy items increased 0.2 percent on the month, after a 0.1 percent May increase. Two-thirds of the increase in this index was due to a 0.3 percent gain in the shelter index, as the index for rent posted the largest increase since August 2013. The medical care and hospital services indexes declined 0.2 and 1.1 percent, respectively. On a yearly basis, the index for non-food and non-energy items rose 1.8 percent.

The food price index rose 0.3 percent in June, after being unchanged for the two previous months. Three-fourths of the increase was due to an 18.3 percent rise in the price of eggs. The indexes for food at home and food away from home rose 1.0 and 3.0 percent, respectively, over the last year.

Read the BLS release.