National Housing Market Outlook

Happy Thanksgiving

November 26, 2014

As 2014 draws to a close, we can all be thankful for the national economy’s steady improvement. Over the last year, the nation has:

  • Added 2.8 million jobs
 
  • Grown GDP by 2.3% (average 3 quarters)
 
  • And, lowered the unemployment rate to 5.8%
 

The national real estate market has benefitted from this economic improvement as well:

  • Home prices increased 5.4% YOY
 
  • Single-family completions are up 11% YOY
 
  • And, vacant homes for sale decreased 8% YOY
 

While the national economy and real estate market can be thankful for expansion over the last year, several markets are more thankful than others:

  • “The San Jose market heads into the holidays still going strong. San Jose builders can be thankful for great job growth, limited inventory, solid appreciation, and highly desirable living environments. San Jose buyers can be thankful if they can find a new roof to put over their heads.” – Dean Wehrli
 
  • “In Atlanta, this Thanksgiving we are thankful for continued strong new home demand that has been fueled by strong economic fundamentals including population and employment growth, particularly in the high-wage sectors that support new home demand at move-up and upscale family price points. Excellent affordability and a general under-supply in the new home market continue to stoke demand.” – David Kalosis
 
  • Houston is thankful for strong job growth over the last couple of years. Since January 1, 2012, Houston has added 315,900 jobs, of which 119,400 were in the past 12 months. Unemployment is 4.9%, the lowest rate since 2008. With WTI crude oil prices hovering around $76/bbl, Houston is also thankful that its economy is much more diverse than thirty years ago.” – Paige Shipp
 
  • Seattle is thankful for stellar employment growth, high incomes, and strong demand for infill land in King County. The market is also thankful for affordable housing outlets in the suburbs… And coffee.” –Ken Perlman
 
  • “The Florida markets are thankful for warm weather, low cost of living, and no state income tax which continues to attract retiree homebuyers to the Sunshine State.” – Lesley Deutch

 

From everyone here at John Burns Real Estate Consulting, we wish you a happy and safe Thanksgiving.
 

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