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.
We spoke with Fleming exclusively about why the West is rebounding so nicely in this arena.
GlobeSt.com: What do you believe is most responsible for the West's rebound in existing-home sales?
Fleming: The West has many markets experiencing strong economic expansion due to growth in new economy sectors (technology, IT). This is causing in-migration of young, well-educated employees in markets like Denver, San Francisco, Seattle and Portland. Of course, this helps to drives demand and sales.
GlobeSt.com: Why have other markets lagged behind in these sales?
Fleming: It's all about the economy. Other markets with a different mix of employment sectors will experience different levels of demand.
GlobeSt.com: What's the prognosis for future West existing-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,”
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.
We spoke with Fleming exclusively about why the West is rebounding so nicely in this arena.
GlobeSt.com: What do you believe is most responsible for the West's rebound in existing-home sales?
Fleming: The West has many markets experiencing strong economic expansion due to growth in new economy sectors (technology, IT). This is causing in-migration of young, well-educated employees in markets like Denver, San Francisco, Seattle and Portland. Of course, this helps to drives demand and sales.
GlobeSt.com: Why have other markets lagged behind in these sales?
Fleming: It's all about the economy. Other markets with a different mix of employment sectors will experience different levels of demand.
GlobeSt.com: What's the prognosis for future West existing-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.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.