April's Top 25 Markets Housing Data Beats National Trends

In a report published Monday, Sterne Agee analyst Jay McCanless analyzed the Energy & Industrials Weekly-Local Housing Market. The analyst remarked that existing home sales represented approximately 90 percent of annual U.S. home ownership transactions and examined trends affecting pricing power and profitability. April Completed and Pending Home Sales Numbers Sterne Agee focused on the top 25 markets more than national housing trends, as homebuilders have approximately 68.5 percent of exposure in the 25 markets. McCanless noted that April completed and pending home sales in the top 25 markets were above national market numbers. Existing home sales for April saw a 3.2 percent year-over-year decline versus the 7.3 percent number reported by the national market. Charleston market saw the highest improvement, growing nine percent year-over-year. With 18 out of the 25 markets providing pending home sales, the analyst reported average pending sales decreased 1.9 percent year-over-year. Six markets showed positive year-over-year comparison, with four markets having three consecutive months of positive YoY growth. Median Price Growth The analyst wrote that median year-over-year price growth in April averaged 7.4 percent in the Top 25, compared with the 5.2 percent numbers for national existing homes. The Inland Empire and Las Vegas saw the highest median price growth of 23.9 percent and 15 percent, respectively. Inventory Top 25 markets saw April's average months to sell reading was 4.0, down from 4.1 in March. April's national average was 5.9. Gross inventory increased 9.8 percent year-over-year versus 6.5 percent in national inventory levels. Chicago and Houston reported the largest declines of 11 percent and 12.5 percent (YoY), respectively. Consumer Confidence Conflicting Data The Conference Board's Consumer Confidence survey in April declined 158 basis points month-over-month. McCanless wrote, “Meanwhile, the University of Michigan's Consumer Sentiment index increased from 80.0 in March to 84.1 in April and Leading Economic Indicators in April showed the thirteenth consecutive M/M improvement in a row.”