Contractors Center Point

Housing Market Continues to Improve Despite Slow Down in Overall Economy

According to the National Association of Realtors, sales of existing homes fell slightly in May, to 4.55 million at an annual rate, down from 4.62 million in April. Both single-family and condominium sales fell over the month. Sales rose in the Midwest, but fell in the other three regions. Sales of single-family homes were up more than 10 percent from one year earlier, with condo sales up 4 percent. The inventory of new homes on the market rose to 6.6 months at the current sales pace in May, up slightly from 6.25 months from April. Still, inventories are much tighter than they were a few years ago, when they peaked at 12.1 months in July 2010.

The NAR reported that the median sale price in May for an existing home was $182,600 (not seasonally-adjusted), up 7.9 percent from one year earlier; this was the third consecutive month of year-over-year price gains. Prices are up on a year-ago basis for both single-family homes (7.7 percent) and condos (8.8 percent). One factor that supported house price gains in May was that the share of sales from foreclosures and short sales fell 25 percent in May, down from 31 percent one
year earlier.

House prices are also rising according to the Federal Housing Finance Agency’s purchase-only price index, which was up 0.8 percent in April from March, and up 3.0 percent from one year earlier. The FHFA reported that prices were higher in most regions in April, with the biggest gains in the West; prices fell in New England and parts of the Southeast and Midwest.

Most house price measures are increasing as demand has picked up, inventories have declined and downward pressure on prices from foreclosures has lessened. However, the number of foreclosures is expected to increase in the near term as a result of the settlement between the mortgage servicers, the states and the Obama administration, so prices will fall slightly in the near term before stabilizing at the end of this year. Still, it is apparent that a housing market recovery is underway. 

To learn more about the construction industry and the current economic environment, please contact the construction professionals of McKonly and Asbury, LLP.

Recap of McKonly & Asbury Spring Construction Seminar

On Friday May 18th, 2012, McKonly & Asbury, LLP with hosts Murray Risk Management and Insurance and Woolford Law held its Spring 2012 Construction Industry Seminar. This informative and timely session included speakers from the accounting, finance, legal and insurance industries.

The morning began with an informative session from Tim Woolford, Managing Partner or Woolford Law. Tim discussed the Top 10 Contract Provisions Most Likely to Affect Your Right to Payment In a Tight Economy. Mr. Woolford was followed by Mike Hoffner, CPA, CIT, Partner with McKonly & Asbury, LLP in which Mike discussed changes in revenue recognition and lease guidance and its impact on the construction community.

Lydia Mantle of Murray Risk Management and Insurance provided an insightful discussion on Personal Surety: Is the Choice Right For You. Finally, the morning was completed with a detailed discussion regarding the climate of the current banking market for the construction industry. This discussion was lead by Scott McManamon, Senior Vice President, and Tina Thompson, Account Analyst, with Fulton Bank.

To learn more about the Spring Construction Seminar, please see the attached file Download Handout Booklet for details. To inquire about further details of the seminar please contact the Construction Professionals of McKonly & Asbury, LLP.