The West is Winning in Home Sales

Fleming: “Assuming, I think reasonably, that the new economy sectors will continue to expand, then demand will continue to grow in these western markets.”

IRVINE, CA—“The West, which has recently been a laggard in sales when compared to other parts of the country, saw a 2.5 % increase from June to July and was the only region to experience an increase in existing-home sales,” First American Financial Corp.’s chief economist Mark Fleming said in a recent company report. He tells GlobeSt.com, “It’s all about the economy; other markets with a different mix of employment sectors will experience different levels of demand.”

He added in the report, “The Northeast fell by 13.2% on a month-over-month basis, while the Midwest and South saw sales drop by 5.2% and 2.5%, respectively. Low inventories still remain a significant issue, although the increase to a 4.7-month supply in July from a downwardly revised 4.5-month supply in June should offer some relief to frustrated potential homebuyers competing over the constrained supply. Low inventory levels continue to put upward pressure on home prices, which rose an estimated 6.1% year-over-year on a seasonally adjusted basis in July, according to the Case-Shiller House Price Index.