Current State of the US Housing Market Pei-Ling LIU Nilar Thein Arturo Peguero

Current situation House prices have increased significantly Urban planning policies have resulted in low- density residential development

Current situation Sales of new homes at their highest levels in six years Existing home sales are down by 7% Even though home prices are up nearly 25% from their early 2012 levels, they’re still down 18% from their 2006 peak

Sales have been soft Builders have been slow to ramp up production Inventories are still low, but they are up 16% from last year

The S&P/Case-Shiller home-price index shows that home prices in April rose 10.8% from a year ago Large yearly increases over the past year reflect continued declines in the share of homes selling out of foreclosure, since they tend to sell at bigger discounts.

The US Housing Market is very variable by area: Prices in Denver and Dallas have reached new highs Miami and Phoenix have posted double digit increases over the past year, but prices are still off of their peak by more than a third

Cooling Down Prices are likely to cool down further as more supply comes to market and as the distressed- sales dynamic fades If builders are able to sell more homes, this would be a positive sign for a housing recovery that so far has struggled to shift into second gear, moving from a market dominated by investors to one with more traditional owner-occupant buyers.

Conclusion Sales of new homes at highest level in 6 years Sales have been soft, in part, because builders have been slow to ramp up production. While inventories are still very low, they are up 16% from last year.

Conclusion Increasing/Recovering home prices: The S&P/Case-Shiller home-price index showed that home prices in April rose 10.8% Still far from 2006 levels: Even though home prices are up nearly 25% from their early 2012 levels, they’re still down 18% from their 2006 peak.