Stronger-than-expected existing home sales offer an encouraging start to a week focused on housing, spending, and the decisions people make about their future.
Some families are planning summer vacations. Others are choosing staycations closer to home. Some are shopping for a home, while others are waiting for the right opportunity to buy or sell.
This week’s economic reports may help answer a simple question:
How confident are Americans feeling about the future?
We received our first clue with the Existing Home Sales report. Sales increased 3.2% in May, exceeding expectations and suggesting buyers remain active despite mortgage rates that continue to hover near 6.5%.
While economists often focus on percentages, many readers are probably asking a different question:
What’s happening where I live?
Housing: A Different Story Depending on Where You Live
The housing market looks very different depending on your region of the country.
| Region | Median Home Price | Annual Change |
|---|---|---|
| Northeast | $479,000 | +9.2% |
| Midwest | $317,000 | +6.4% |
| South | $374,000 | +3.6% |
| West | $633,000 | +5.5% |
The West remains the most expensive housing market in the nation, while prices in the Midwest remain roughly half of those seen in many Western markets.
For homeowners and potential sellers, rising prices may be welcome news. For first-time buyers, affordability remains a challenge despite the increase in available inventory seen in recent months.
Housing experts currently expect both existing-home sales and home prices to rise approximately 4% over the coming year. While no forecast is guaranteed, the outlook suggests many economists believe housing demand will remain relatively healthy.
Mortgage rates remain near 6.5%, which continues to affect affordability for many buyers.
Why This Matters to Willie and Me
Housing is more than an economic statistic. It affects real people making real decisions.
Willie and I currently rent an apartment near my daughter so I can help with dog sitting and spend more time with family. At the same time, my daughter is watching the housing market from a different perspective as a potential seller looking to be closer to work.
That’s one reason housing reports catch my attention. Whether you’re a homeowner, renter, first-time buyer, or someone hoping to move in the future, housing often plays a major role in financial planning and long-term goals.
The housing market affects all of us differently. Some readers may be hoping to buy their first home. Others may be thinking about downsizing, relocating, or selling a property. Still others may simply be hoping for more affordable rents. The common thread is that housing influences many of the decisions we make about our future.
What We’ll Learn Later This Week
Several reports scheduled for release later this week may provide additional clues about how Americans are feeling about the future.
New Home Sales
Will buyers continue purchasing newly built homes despite higher borrowing costs? This report helps us understand whether people feel confident enough to make one of the largest financial commitments of their lives.
Durable Goods Orders
Are consumers and businesses moving forward with major purchases such as vehicles, appliances, machinery, and equipment? This report offers insight into whether people are spending confidently or choosing to wait.
GDP (Final Estimate for the First Quarter)
GDP measures overall economic activity. While the headline number often gets the attention, the more important question may be whether Americans are continuing to participate in the economy through spending, investing, hiring, traveling, and making long-term plans.
We’ll update this article on Friday after the remaining reports are released and see whether the week’s data supports the idea that Americans are feeling more confident about the future.
What Do You Think?
Are you feeling more optimistic about the economy than you were a few months ago?
Whether you’re planning a vacation, considering a major purchase, watching the housing market, or simply trying to make sense of the headlines, we’d love to hear your perspective.
Sources & Additional Reading
National Association of Realtors Existing Home Sales Report:
https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales
National Association of Realtors Newsroom:
https://www.nar.realtor/newsroom
Freddie Mac Primary Mortgage Market Survey:
https://www.freddiemac.com/pmms
U.S. Census Bureau New Residential Sales:
https://www.census.gov/construction/nrs/index.html
U.S. Census Bureau Durable Goods Report:
https://www.census.gov/manufacturing/m3/
U.S. Bureau of Economic Analysis (GDP):
https://www.bea.gov/data/gdp/gross-domestic-product
Willie and I appreciate every reader. 🐾