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Housing News from Our Lending Partners at Idaho Central Credit Union
Housing Ends the Year Strong
Overview: As usual, trading volume was considerably reduced during the last couple of weeks of the year. The market reaction to the economic news was minor, and mortgage rates remained near-record-low levels.
The remarkable rebound in the housing market has continued. In November, existing-home sales, which account for roughly 90% of the market, were 26% higher than a year ago and near the best levels since 2006. The median existing-home price was 15% higher than a year ago, also close to record levels. The one drawback was that inventory levels were down 22% from a year ago. The number of homes for sale was at a record-low 2.3-month supply nationally, well below the 6-month supply that is considered a healthy balance between buyers and sellers.
Sales of new homes, which make up the remaining 10% of the market, also continued at a blistering pace. In November, new home sales were 21% higher than a year ago, yet a lack of inventory has been a constraint in this area as well. Builders say that they are putting up new homes as quickly as possible, but that a lack of land, labor, and materials is limiting the pace of construction.
Congress passed a $900 billion coronavirus relief bill, which will provide additional assistance to households, small businesses, and healthcare providers. The bill includes an extension of supplemental unemployment benefits of $300 per month and direct payments of $600 to qualifying individuals. Lawmakers continue to discuss whether to increase the amount of these payments.
