June continued the summer of blues for the housing market. Permits dropped 2.2% month over month vs +2.2% expected. Housing Starts did even worse collapsing 12.3% month over month. The margin of error was 8.3 % points. This happened after May’s 4.8% rise month over month. Analysts believe this drop could be from construction labor shortages and rising material costs. Rising material costs, such as lumber, and a shortage of qualified construction workers has pushed up input costs for home builders. This was the third straight month of declining permits in a row, a largest since November 2016. The drop in permits were from 424K to 387K, an 8.7%… Read moreHousing Market Continues To Stumble
Joe Rubino from DollarCollapse.com \argues here housing bubbles have three predictable stages. The first stage is the longest and is driven by excesses liquidity from either the central bank or foreign demand. This liquidity results in a large number of people looking to buy houses with the excess cash they have in their hands. Sellers usually have the peak prices from another mania in mind and are not willing to sell at anything less than that amount. “Demand initially outstrips supply, causing home prices to rise, slowly at first and then explosively as increasingly-desperate buyers become willing to pay any… Read moreThoughts on the Denver Housing Bubble
There were many signs the housing market in the metro Denver area is cooling. First, home prices were up only 1.05% from the prior month in June. Average selling price for homes was $492,029 in June up from $486,913 in May. Next, only 5,434 homes sold in June, this is down almost 6% from May and 11.5% from June 2017. This is a sign that first-time buyers are being priced out of the market and without willing buyers, prices cannot continue to climb. The biggest change is the continued double-digit increase in housing inventory. Inventory was up 15.5% month over… Read moreAnother Positive Sign For Denver Home Buyers: Inventory of Homes For Sale up 15.5% in June From Prior Month.