The prices of single-family homes in 20 major cities rose 0.6% in July and 3.2% from a year ago, according to the Case-Shiller home price index released Tuesday. Prices rose in 12 of the 20 metropolitan areas tracked by Case-Shiller in July compared with June.
Existing home sales rise in August 2010. Sales climbed 7.6 percent to an annual rate of 4.13 million units, the National Association of Realtors reported today.
Is the housing industry beginning to stabilize? Housing starts in the U.S. increased more than forecast in August; this could be a positive signal of stabilization.
Builders broke ground on an annual rate of 598,000 homes in August. This is up 10.5 percent over July (541,000 pace) and the most since April. Economists were expecting August starts at a 550,000 pace, so this is a pleasant surprise this morning.
In addition, building permits, a proxy of future activity, rose from a record low. Building permits increased 1.8 percent to a 569,000 annual rate in August. Permits reached a record low of 559,000 in July.
It’s a tough economic climate. No doubt about it. Housing has been a bit of a rollercoaster, and there’s no clear end in sight. But every dark cloud has a sliver lining, and the Wall Stree Jornal recently published an article that finds 10 silver linings for all the house hunters; Ten Reasons to Buy a Home.
1. You can get a good deal.
2. Mortgages are cheap.
3. You’ll save on taxes.
4. It’ll be yours.
5. You’ll get a better home.
6. It offers some inflation protection.
7. It’s risk capital.
8. It’s forced savings.
9. There is a lot to choose from.
10. Sooner or later, the market will clear.
The USA Today recently highlighted the Outer Banks as a great location for second home buyers. Here’s a quick snippet of what they had to say…
“The narrow barrier islands of the Outer Banks and largely uninhabited Cape Lookout National Seashore occupy most of the coastline of northern North Carolina. It tends to be an escapist destination. It’s sleepy in comparison to major beach resort communities, with peace and quiet a chief appeal. There are few high-rises and fewer condos. Mostly, it’s single-family houses spread among small towns. The northern beaches of the Outer Banks, on Bodie Island, include the towns of Duck, Corolla, Southern Shores, Kitty Hawk, Nags Head and Kill Devil Hills. They’re more expensive, with most houses in the $400,000 to $800,000 range. The southern beaches of less-developed Hatteras Island, including Avon, Hatteras Village and Rodanthe, are more affordable. There, one-bedroom condos start around $100,000.”
Hurricane Earl may have chased some tourists away from the Outer Banks last week, but as a whole, this has been a very strong year for OBX tourism.
The July 2010 Occupancy Tax and Food & Beverage Tax were record setting on the Outer Banks. Occupancy tax collection from vacation rentals rose 15% in July.
Rental receipts during July 2008 and 2009 dropped from the earlier all time high of $97 million set in July 2007, but July 2010 occupancy revenues topped out with gross rental receipts just exceeding $101 million, surpassing the previous July 2007 high.
For the January through July period, that revenue is up 5%. On a month to month basis, January receipts were up, February was up, March was down, April was down, May was down, and June and July were up. Though August figures are not yet available, indications are that they increased as well.
The July 2010 Occupancy Tax and Food & Beverage Tax were record setting on the Outer Banks.
Rental receipts during July 2008 and 2009 dropped from the earlier all time high of $97 million set in July 2007 , but July 2010 occupancy revenues topped out with gross rental receipts just exceeding $101 million, surpassing the previous July 2007 high.
The number of buyers who signed contracts to purchase previously occupied homes increased by 5.2 percent in July from June.