RE Stats: 7/5-7/10

3.9 million households were formed during the two ears from July 2020 to July 2022. Only about 1.7 million households were expected based on demographics. (A key reason was working from home with roommates splitting up)

Since new constructions typically accounts for 15% of supply, Fed researchers estimate that new construction housing supply would have needed to spike 300% in order to match the pandemic housing demand surge!

The Fed researches also estimate that a one percentage point increase in the mortgage rate lowers housing demand by 10.4 percent!

We can conclude that the recent surge in US home prices was almost all due to demand - not tight supply.

In Mesa County

• There are currently 431 active homes on the market in Mesa County. This is a 4% increase from 413 last week.

• The average sold price YTD is $425,451 and the median sold price YTD is $386,000.

• There have been 66 price reductions in the last 6 days.

• There have been 66 new listings in the last 6 days.

• There have been 64 pending listings in the last 6 days.

NATIONAL MARKET UPDATE
 

Residential Construction Spending unexpectedly increased 2.2% in May, with a 1.7% gain in single-family builds. It was the first monthly gain in a year, as home builders ramp up to meet persistent homebuyer demand.

NAHB analysis of Census Bureau data showed that in the first three months of the year, almost 60% of single-family home building activity occurred in counties where baby boomers make up the majority of the population.

Home sale prices are rising again. A national online database reports that nationally the average home sale price came in above the original listing price for the first time since August of last year.

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