My Real Estate Blog

The economic recovery continues to bump along in an up and down pattern, but what's important to keep in mind is that the core trendline remains positive.

The latest housing numbers released last week show that new home sales, which had been anemic following the expiration of the tax credit deadlines, bounced back with vigor in June, according to the Commerce Department.  Single family sales jumped by 24% seasonally-adjusted basis over May, and were 19% above the totals for June 2009.

The sales rebound verged on spectacular in the Northeast region -- up 46% over the prior month. Gains were 33% in the South, and 21% in the Midwest. Only the Western states saw a drop in new sales, and that was by 7%.  

Prices of all homes -- existing and new -- also continue on a path of modest recovery.  On a national average basis, home prices were 1.3% higher compared with the month before, but they gained 4.6% year-over-year.

Three metropolitan markets tracked by Case-Shiller recorded year-over-year price increases in double digits: Minneapolis and San Diego, up by 12%, and San Francisco by 18%.  Other markets also saw noteworthy annualized gains: Los Angeles prices were up by nearly 10%, Phoenix and Washington DC by 7%, and Boston by 5%.

Still another positive sign: mortgage applications to buy houses continue to increase, after weeks of being down. The Mortgage Bankers Association reported a 2% jump in purchase applications last week - even while refinancing applications dropped 4% despite record low mortgage rates.