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Economy in Brief
U.S. Mortgage Applications Continued to Slide Amid Higher Rates
The biggest declines have been in refinancing activity, while applications for purchase are just starting to crack...
UK Inflation Jumps
Inflation is at the highest rate since the series began in January of 1989...
U.S. Industrial Production Much Stronger than Expected in April
The increase in manufacturing output in April was once again led by motor vehicle and parts production...
U.S. Retail Sales Posted Solid Rise in April
Notwithstanding falling real incomes and declining confidence measures, consumer spending posted a solid increase...
U.S. Home Builder Index Took a Steep Drop in May
This is the fifth straight month that builder sentiment has declined...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
Profits and Margins Plunge In Q1: Expect More Margin Contraction As Fed Squeezes Inflation
The Many Links of Inflation Cycle: Hard Landing Is Needed to Crack Them
Peak Inflation & Fed Policy: A Relationship Which Should Worry The Fed And Scare Investors
Why Have the Yields on TIPS Been Negative in the Past Two Years?
by Tom Moeller November 11, 2004
New home price appreciation across the US varies widely; by what is measured and by region.
The average price of a new home rose 8.4% through 3Q, a slowdown from the peak rate of appreciation of 13.7%. Median prices through 3Q rose 9.7%, down from a 15.4% peak in 1Q04.
Adjusted for quality improvements, the Census Bureau estimates that new home prices rose a lesser 6.4% through 3Q.
Older existing single family home prices rose a median 7.7% y/y through 3Q. That, however, reflects a 10.6% rise through 1Q04 in improvements (+14.2%) and repairs (2.3%).
Location, Location, Location: Home price appreciation in the Western region of the US during 2003 was roughly triple that in the Midwest, a comparison driven at least in part by 0.8% growth in employment in the West (2.5% in '04) versus 0.1% growth in the Midwest (0.9% in '04).
Are Home Prices the Next "Bubble"? from the Federal Reserve Bank of New York can be found here.
| New Single Family Home Prices | 1 Year Chg. | 2 Year Chg. (AR) | 5 Year Chg. (AR) |
|---|---|---|---|
| US (Average) | 8.4% | 11.0% | 6.9% |
| Quality Adjusted | 6.4% | 6.9% | 5.1% |
| By Region Thru 2003: | |||
| West | 8.9% | 7.9% | 6.5% |
| Northeast | 7.8% | 5.9% | 5.6% |
| South | 4.4% | 3.6% | 3.6% |
| Midwest | 3.3% | 3.8% | 3.4% |
