MetroIntelligence Economic Update by P. DUFFY
Denver named hottest housing market by U.S. News & World Report
The hottest housing markets continue to include MSAs in Colorado, North Carolina, Florida and Texas that were also popular during the pandemic. In June 2023, three of the top five hottest markets were in North Carolina, including Durham, Raleigh and Charlotte, primarily due to high scores for buyer demand and relative affordability. While that didn’t stop first-ranked Raleigh in December 2022 from being replaced by Denver in June, Raleigh still came in third.
August economic indicator shows U.S. economy showing weakest growth since February
The headline S&P Global Flash US PMI Composite Output Index indicated only a fractional increase in output across the private sector midway through the third quarter. At 50.4 in August, down from 52.0 in July, the latest reading signaled the weakest upturn in activity since February. Persistent challenges stimulating demand in the manufacturing sector were accompanied by slower growth in service sector output.
New home sales jump 4.4 percent in July and 31.5 percent year-on-year
Sales of new single‐family houses in July 2023 were at a seasonally adjusted annual rate of 714,000, up 4.4 percent from June and 31.5 percent year-on-year. The median sales price of new houses sold in July 2023 was $436,700, and the average was $513,000. The seasonally‐adjusted estimate of new houses for sale at the end of July was 437,000. This represents a supply of 7.3 months at the current sales rate.
Existing home sales fall 2.2 percent in July, down 16.6 percent year-on-year
Existing-home sales fell 2.2% in July to a seasonally adjusted annual rate of 4.07 million. Sales receded 16.6% from one year ago. The median existing-home sales price rose 1.9% from one year ago to $406,700. The inventory of unsold existing homes increased 3.7% from the previous month to 1.11 million at the end of July, or the equivalent of 3.3 months’ supply at the current monthly sales pace.