Housing Has Legs

Surprisingly strong housing numbers out this morning: new single-family homes rose 16.6% in April to an annual pace of 616,000 (see chart below), well above expectations, and up 23.8% over the past year. Supply of new homes fell to just 4.7 months, all due to faster sales (inventories were flat). Sales are up strongly in the Northeast, solidly in the South and West, although down in the Midwest. The median ($321,100) and average ($379,800) prices jumped 9.7% and 13.5%, respectively, the last year.

There is more to come. The graph below shows the data from 1963. We may never reach the 2005 peak of 1.328 million (or, maybe we will), but housing will continue to strengthen because job growth and wages are rising, and home ownership is still low. Housing has legs.

• 20 Aug, 2015

  Land of Borat

  I probably should not confess to enjoying Borat (full title:ÂBorat: Cultural Learnings of America for Make Benefit ...

• 26 Apr, 2020

  Memento Mori

  The Romans had a tradition that, following a military victory, the triumphant general was paraded through the city in a ...

• 2 Jan, 2015

  Shipping

  First, happy new year to all!I walked into the office this morning to a crystal clear view of the Pacific. What a ...