• Corporate
  • News
  • Market Recap: Pending Home Sales Increase, Home Prices are Up, Construction Spending Climbs

Market Recap: Pending Home Sales Increase, Home Prices are Up, Construction Spending Climbs

  • January 03, 2020

CMG image

Markets were closed on Wednesday in observance of the New Year’s Day holiday.  The pending home sales index improved in November after an October decline.  The S&P CoreLogic Case-Shiller home price index appreciated more rapidly after a gradual slowdown in 2019.  US construction spending increased. 

The pending home sales index turned around in November, jumping 1.2% month-over-month.  Year-over-year the index is up 7.4%.  Regionally, the West and Midwest saw increases while the Northeast and South each declined slightly.  Chief economist for the National Association of Realtors (NAR), Lawrence Yun, commented on the growth, “favorable conditions are expected throughout 2020 as well, but supply is not yet meeting the healthy demand.”

The Case-Shiller home price index appreciated a seasonally-adjusted 0.4% month-over-month and 2.2% year-over-year in October.  Gains were driven by southeastern cities Tampa, FL and Charlotte, NC.  Previously heated metro, San Francisco, actually experienced a decrease in home prices.  After a national slowdown in home price appreciation in 2019, prices are expected to increase in 2020.  Limited homes for sale and lower mortgage rates will likely lead to higher home prices. 

US construction spending increased 0.6% month-over-month at an annual rate of $1.32 trillion, exceeding expectations in November.  October’s figure was revised upward.  Residential construction specifically increased 1.9%.  Spending on public projects also increased, up 0.9%.

Strong buyer demand will continue into 2020 and new home construction to replace for-sale inventory is likely to pick up.  If you plan to buy or build a home in 2020, get preapproved for mortgage financing first.  Low mortgage rates will likely lead to a busy housing market and an early home buying season. 


Sources: Econoday, MarketWatch, MarketWatch, MarketWatch, MarketWatch, Mortgage News Daily

  • Facebook Icon
  • Linked In Icon
  • Twitter Icon
  • Google Plus Icon

Latest Tweets

© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Broker and Lender #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (http://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1820).