What does the financial calendar look like for the week of 7/31 – 8/4?
The latest home sales data from the National Association of Realtors® showed that month-over-month home sales were up 0.3%. The figure actually exceeded expert predictions. The consensus before the numbers were released was that home sales would decrease by 0.5%.
Additionally, data also showed that the price difference between new and existing homes is starting the decrease. The median sales price for a new home in June 2023 was $415,400, and the median sales price for an existing home was $410,200. The difference of $5,200 was the smallest since 2022.The following events, reports, and announcements are scheduled for the upcoming week and could impact the mortgage market:
Monday, July 31st
Chicago Business Barometer – July 2023
Fed senior loan survey – Q2 2023
Tuesday, August 1st
S&P Final Manufacturing PMI – July 2023
Job openings – June 2023
ISM Manufacturing – July 2023
Construction spending – June 2023
Wednesday, August 2nd
ADP employment – July 2023
Thursday, August 3rd
Initial jobless claims – July 29th
U.S. productivity (prelim) – Q2 2023
S&P final U.S. services PMI – July 2023
Factory Orders – June 2023
Friday, August 4th
U.S. nonfarm payrolls – July 2023
U.S. unemployment rate – July 2023
U.S. hourly wages – July 2023
How can homebuilders stimulate the housing market?
While existing home sales have seen challenges in the current housing market, new home sales have been gaining steam in recent months. The current market has buyers, but it’s short on inventory. That’s where new home construction can help get the market moving.
New home construction may help fill the gap in the current housing market. Builders are currently on track to complete 1.47 million new homes in the U.S. at the current pace. While some estimates have the housing market needing over 6 million homes to meet demand, the addition of almost 1.5 million new units to the market should help loosen conditions.
Which housing markets are the most overvalued right now?
While hot housing markets tend to grab headlines, buyers need to watch out for markets that may be overvalued and headed for a correction. Credit agency, Fitch Ratings, has reviewed housing markets and worked out which markets have the largest difference between home prices and the true value of the properties sold. The data showed that, currently, most markets in the U.S. are overvalued when it comes to home prices, but there were seven markets that stood out more than others.
Which market had the biggest spread between home price and actual value? It’s the Buffalo, NY metro area. According to the data provided by Fitch Ratings, home prices in the greater Buffalo area may be overvalued by 25%-to-29%.
Other metro areas that were highlighted include Birmingham, Indianapolis, Kansas City, Milwaukee, Raleigh, and St. Louis.
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