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Tuesday, February 25, 2014

Wednesday: New Home Sales

by Calculated Risk on 2/25/2014 08:53:00 PM

An interesting article on land values from the WSJ: Land Investors Brace for Slowdown

A look at the sequential, quarter-to-quarter change in land prices underscores the cooling of the market. According to Zelman's monthly surveys of builders, brokers and developers in 55 major markets, prices of finished lots receded from their biggest recent gain—6.8% in the first quarter of 2013 from the previous quarter—to a more tepid 2.9% gain in last year's fourth quarter.

Some economists and market observers now predict smaller price gains—and, in some cases, flat prices—for land in 2014. "We expect the pace of acceleration to ease," Zelman analyst Ryan McKeveny said.
Land prices fell sharply during the bust (land prices declined more than house prices), and prices increased quickly over the last couple of years. Now price appreciation is slowing.

• At 7:00 AM ET, the The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.

• At 10:00 AM, New Home Sales for January from the Census Bureau. The consensus is for a decrease in sales to 405 thousand Seasonally Adjusted Annual Rate (SAAR) in January from 414 thousand in December.