The White House wants to help you move out of your parents’ basement. That was the message from Jason Furman, the chairman of the White House’s Council of Economic Advisers, at the Zillow Housing Forum in Washington yesterday.
Did someone say housing recovery? Existing home sales numbers for May were released this morning, handily beating economists’ expectations. Existing homes are now being sold at an annual rate 4.89 million units, up 4.9 percent month-over-month, Reuters reports. Forecasts had put the growth rate at only 2.2 percent. The number of properties on the market is also up, suggesting that the housing market is finally pulling out of its late 2013 slump.
Wonder what house prices are doing around the world? Then take a look at the International Monetary Fund’s new Global Housing Watch project, which tracks global housing booms and busts. There are quite a few markets that are more inflated than ever. This chart from Matt O’Brien at Wonkblog ranks national housing markets by how much current price-to-rent ratios — that is, how much it costs to buy vs rent a similar property — deviate from the historical average.
The housing recovery continues, albeit modestly. The S&P/Case-Shiller composite index of house prices in 20 metro areas rose 0.8% in January (seasonally adjusted), according to a report released yesterday. Economists had predicted an 0.7% rise. On an year-to-year basis, home prices are 13.2% higher than they were in January 2013.
Who wants to buy a new house when the weather is terrible? According to new data released last week, new home sales were down by 7% in December — partially due to bad weather. However, resales of existing homes were up by 1%, according to the National Association of Realtors. Total sales for 2013 were the strongest they have been since 2006, according to Reuters. Here’s an overall view of the housing market:
“Fast-rising property markets are haunting the global economy again, five years after the U.S. subprime mortgage bubble burst and triggered the worst financial crisis since the 1930s,” Reuters reports. Still, ”the warning signals are flashing amber, not red, and several countries have acted to cool overheating markets,” Alan Wheatley and Tim Reid report.