This Week in Real Estate: April 10, 2017


As home prices continue to surge, ADP reported This Week in Real Estate that the labor market continues to strengthen, recording the best month for new jobs since December 2014. Below are a few highlights from the first week of April that influence our business:

* New Homes Strengthen Economy, Spur Job Growth. As the housing industry celebrates New Home Month in April, newly released data from the U.S. Commerce Department confirms the significant contribution that residential construction has on the U.S. economy. Final estimates of fourth quarter 2016 gross domestic product (GDP) growth show that housing’s share of GDP stands at 15.6%. “Home building is a key driver of the American economy,” said Granger MacDonald, chairman of the National Association of Home Builders (NAHB). “Housing creates new income and jobs, purchases of goods and services, and revenue for local governments.” NAHB research shows that building 100 single-family homes in a typical metro area creates 297 full-time jobs and generates $28 million in wage and business income and $11.1 million in federal, state and local tax revenue.
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* U.S. Home Price Report Shows Prices Up 7 Percent in February. CoreLogic released its Home Price Index (HPI) and HPI Forecast for February 2017 on Tuesday which shows home prices are up both year over year and month over month. Home prices nationwide, including distressed sales, increased year over year by 7 percent in February 2017 compared with February 2016 and increased month over month by 1 percent in February 2017 compared with January 2017. The CoreLogic HPI Forecast indicates that home prices will increase by 4.7 percent on a year over year basis from February 2017 to February 2018, and on a month over month basis home prices are expected to increase by 0.4 percent from February 2017 to March 2017. “Home prices and rents have risen the most in local markets with high demand and limited supply, such as Seattle, Portland and Denver,” said Dr. Frank Nothaft, chief economist for CoreLogic. The CoreLogic Home Price Index is projecting an additional 5 percent rise in home prices nationally over the next 12 months.
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* ADP: U.S. Companies Hire Most Workers in Over Two Years. U.S. companies added 263,000 workers in March, the most since December 2014, suggesting further tightening of the labor market, payrolls processor ADP said on Wednesday. ADP’s March figure easily beat the median forecast of 187,000 increase among economists surveyed by Reuters. Strong job gains in the coming months will likely add upward pressure on wages, supporting the Federal Reserve’s view for at least two more interest rate increases by the end of 2017.
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Have a productive week!

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