Page 12 - Aruba Bank 24 JULY 2015
P. 12
U.S. NEWS A7
Thursday 23 July 2015
US Financial Front:
Home sales surged in June to fastest pace in 8-plus years
JOSH BOAK Nationally, a mere five Realtor Stephan Marshall, top, walks with potential buyer Sasha rental market.
AP Economics Writer months’ supply of homes Approved building permits
WASHINGTON (AP) — was on the market in June, Martinez at a home for sale in Pacifica, Calif. The National rose increased 7.4 percent
Americans bought homes compared with 5.5 months to an annual rate of 1.34
in June at the fastest rate a year ago and an av- Association of Realtors released existing home sales for June million in June, the highest
in over eight years, push- erage of six months in a level since July 2007, the
ing prices to record highs healthy market. on Wednesday, July 22, 2015. (AP Photo/Jeff Chiu) Commerce Department
as buyer demand has Some markets are barely said last week. Almost all
eclipsed the availability of adding any listings. The It’s also possible that more could prove to be a drag the gains came for apart-
houses on the market. condominium market in homebuyers are aggres- on sales growth in the com- ment complexes, while
The National Association of Massachusetts contains sively checking the market ing months. permits for houses last
Realtors said Wednesday just 1.8 months’ supply, for listings, enabling them to Ever rising home values are month rose only 0.9 per-
that sales of existing homes according to a Federal act fast with offers despite stretching the budgets of cent.
climbed 3.2 percent last Reserve report this month. the lack of new inventory. first-time buyers and own- The share of Americans
month to a seasonally ad- The majority of real estate “Buyers can more quickly ers looking to upgrade. As owning homes has fallen
justed annual rate of 5.49 agents in the Atlanta Fed be alerted of new listings homes become less af- this year to a seasonally
million, the highest rate region — which ranges and also more convenient- fordable, demand will like- adjusted 63.8 percent, the
since February 2007. Sales from Alabama to Florida — ly access real estate data ly taper off. Home prices lowest level since 1989.
have jumped 9.6 percent said that inventories were to help them pre-search a have increased at more Real estate had until re-
over the past 12 months, flat or falling over the past potential purchase before than three times the pace cently lagged behind
while the number of listings year. they even step foot in the of wages. The average much of the six-year re-
has risen just 0.4 percent. Some of the recent sales property,” said Blomquist, hourly wage has risen just bound from the recession,
The median home price burst appears to come adding that this could 2 percent over the past 12 hobbled by the wave of
has climbed 6.5 percent from the prospect of low help to explain why sales months to $24.95 an hour, foreclosures that came af-
over the past 12 months to mortgage rates beginning growth have dramatically according to the Labor ter the housing bubble be-
$236,400, the highest level to rise as Fed officials con- outpaced new listings so Department. gan to burst roughly eight
— unadjusted for inflation sider raising a key interest far this year. Some would-be buyers years ago.
— reported by the Realtors. rate from its near-zero level Properties typically sold last are also spurning their lim- But the job market found
Home-buying has recent- later this year. Past efforts month in 34 days, the short- ited options on the market. new traction in early 2014.
ly surged as more buyers by the Fed officials to re- est time since the Realtors Tony Smith, a real estate Employers added 3.1 mil-
have flooded into the real duce their stimulus efforts began tracking the figure broker in Charlotte, North lion jobs last year and are
estate market. Robust hir- have led to higher mort- in May 2011. There were Carolina, said some rent- on pace to add 2.5 mil-
ing over the past 21 months gage rates, creating ex- fewer all-cash, individual ers shopping for homes lion jobs this year. As mil-
and an economic recov- pectations that homebuy- investor and distressed are now choosing instead lions more Americans have
ery now in its sixth year ers will face increased bor- home sales in the market, to re-sign their leases and found work, their new pay-
have enabled more Amer- rowing costs later this year. as more traditional buyers wait until a broader and checks are increasingly
icans to set aside money That possibility is prompt- have returned. better selection of proper- going to housing, both in
for a down payment. But ing some buyers to finalize Sales improved last month ties comes onto the mar- terms of renting and own-
the rising demand has sales before higher rates in all four regions: North- ket. Construction has yet ing.
failed to draw more sellers make borrowing costs pro- east, Midwest, South and to satisfy rising demand, Low mortgage rates have
into the market, limiting the hibitively expensive, noted West. as builders are increasingly also helped, although rates
availability of homes and Daren Blomquist, a vice Still, the limited supplies focused on the growing are now starting to climb to
sparking higher prices that president at RealtyTrac, a levels that could slow buy-
could cap sales growth in housing analytics firm. ing activity.
the coming months. The premiums that the The average 30-year fixed
“The recent pace can’t Federal Housing Adminis- rate was 4.09 percent last
be sustained, but it points tration charges borrowers week, according to the
clearly to upside poten- to insure mortgages are mortgage giant Freddie
tial,” said Ian Shepherdson, also lower this year, fur- Mac. The average has ris-
chief economist at Panthe- ther fueling buying activity, en from a 52-week low of
on Macroeconomics. Blomquist said. 3.59 percent.q
Shell gets permits for limited oil drilling in Arctic waters
KEVIN FREKING the company doesn’t have ployed within 24 hours. agencies. said in a statement.
DAN JOLING on site the critical emer- “Without question, activi- Shell spokeswoman Kelly
Associated Press gency response equipment ties conducted offshore Some environmental op de Weegh said by email
ANCHORAGE, Alaska (AP) to cap the well in case of Alaska must be held to the that receipt of the drilling
— The Obama administra- a leak. That equipment is highest safety, groups worry the Arctic’s permits signals the end of
tion has given Royal Dutch aboard a ship headed to environmental protection the permitting process, and
Shell PLC approval to begin Portland, Oregon, for re- and emergency response remoteness and rugged drilling will begin when the
limited exploratory oil drill- pairs. standards,” said the bu- area is clear of sea ice.
ing off Alaska’s northwest The Interior Department’s reau’s director, Brian Saler- conditions will hamper “We remain committed
coast. Bureau of Safety and no. to operating in a safe, en-
The two permits issued Environmental Enforce- The department had given cleanup efforts in the event vironmentally responsible
Wednesday clear the way ment said in a statement a conditional OK in May to manner and look forward
for drilling in Chukchi Sea that Shell could submit an Shell’s drilling plan, pend- of a spill, risking devastation to evaluating what could
but with conditions. amended application for ing the company’s ability potentially become a na-
Shell can only drill the top deeper drilling when the to obtain all necessary per- of a fragile ecosystem. tional energy resource
sections of wells because capping stack can be de- mits from state and federal base,” she said.q
Cindy Shogan, executive
director of the Alaska Wil-
derness League, called it
the wrong choice.
“This decision puts the fate
of the fragile Arctic Ocean,
and our climate future, in
the hands of Shell Oil,” she
