Latest / Markets with Megan: A Quick Financial Markets Update / Insights into Housing Data: Housing Market Resurgence | Episode 113 | 03-21-2024

Transcript

Insights into Housing Data: Housing Market Resurgence | Episode 113 | 03-21-2024 · Markets with Megan: A Quick Financial Markets Update

• 0:01
  Speaker 0: After about two years of just disappointing and atrocious data in the housing market, this week we started to see some signs of life.
• 0:08
  Speaker 0: This is Megan Horneman, the Chief Investment Officer for Verdence Capital Advisors.
• 0:12
  Speaker 0: We're coming to you today with our regular segment of Markets with Megan, and we wanted to discuss this week's economic data that we've gotten on the housing front.
• 0:20
  Speaker 0: Yesterday, we got a double-digit increase in housing starts in the month of February.
• 0:26
  Speaker 0: That was much better than expected, and what's good about that is the other report that comes out alongside housing starts is building permits, and that's a leading indicator for future construction.
• 0:37
  Speaker 0: That actually was much better than expected as well.
• 0:40
  Speaker 0: In the month Today, which is Thursday, march 21st, we saw nearly a 10% jump in existing home sales.
• 0:49
  Speaker 0: When you look at the expectations before that report came out, analysts had expected that reading to be negative.
• 0:55
  Speaker 0: The good news underneath for both of these indicators yesterday's data and then today's is that the increase in sales and starts was led by the single-family housing sector, not necessarily the multi-family housing sector, which we already have a supply glut going on there.
• 1:13
  Speaker 0: We need more single-family homes, and both of these indicators saw increases there.
• 1:18
  Speaker 0: What does all this mean?
• 1:19
  Speaker 0: When it comes to housing.
• 1:21
  Speaker 0: Any good news is good news for housing.
• 1:23
  Speaker 0: It's been a really tough couple of years because of higher interest rates and skyrocketing prices in the housing market.
• 1:29
  Speaker 0: It's going to still take some more time, we think, to get the supply demand imbalance worked out.
• 1:35
  Speaker 0: If you look at the month supply of existing homes, it did dip lower again in the month of February, so it's 2.9 months.
• 1:44
  Speaker 0: That's compared to the past 20-year average of 5.4 months.
• 1:48
  Speaker 0: In addition, the existing home prices.
• 1:51
  Speaker 0: They did rise for the first time in eight months.
• 1:54
  Speaker 0: This is going to continue to put pressure on the affordability of homes.
• 1:59
  Speaker 0: You have less supply, you have higher prices.
• 2:02
  Speaker 0: So home by our affordability still remains a problem.
• 2:05
  Speaker 0: We'll continue to watch this data because we would like to get some life in the housing market.
• 2:11
  Speaker 0: It's been one month.
• 2:12
  Speaker 0: Let's hope that this can continue, especially as we go into the spring selling season.
• 2:16
  Speaker 0: That's all we have today.
• 2:18
  Speaker 0: If you have any questions or comments, please feel free to reach out to podcast at Verdence dot com.
• 2:22
  Speaker 0: Thank you.