Sales Rates Move Higher
The housing industry is under an enormous strain, without a doubt. However, news is that existing home sales are up. Some real estate agents are contributing the growth in home sales to be because many home buyers are finally getting off the fence about making their investment. Since many homes are now at the lowest rates they have been in four years, the investment opportunities are simply too good to pass up, and buyers realize this.
Resale of homes and condos in the United States market have risen by 2 percent. This is a seasonally adjusted rate that takes into consideration the movement from April to May. In May, some 4.99 million homes were bought while in April, 4.89 million homes were purchased. The good news is that this is the highest rate increase since February and may signal a lessening of the worries many home buyers have faced over the last months.
Look farther back and you can see where the real numbers are. In the last year, figures are still markedly lower with a drop of 15.9 percent. Look even farther back, to the peak home sales of 2005, and the drop is much more considerable at 31 percent.
Of the homes selling, about a third of the total sales are distressed sales. These include homes that are in foreclosure (or have been foreclosed on) as well as short sales done to keep foreclosures from happening.
Inventory numbers are still high, but did fall 1.4 percent in this period. There is still a near 11-month supply on the market. Home sales have dropped in value, though. They are down 6.3 percent over 2007 to $208,600, which is a median price. The largest growth was seen in the Midwest while the Northeast rose nearly the same about. The South saw the smallest increase of all areas.
New home sales have not fared well, which has put a large strain on the economy as home builders struggle to find individuals willing to buy. The Commerce Department announced on June 26th that new home sales fell by 2.5 percent. The annual rate (seasonally adjusted) has fallen to 512,000.
As this shows, home buyers should be ready to get into the market. With home prices at historically lower numbers and interest rates quite loan, there has not been a better time in recent history to get into the market. Since many economists feel that by the end of the year the housing market will turn upward significantly, those considering purchases should make their move sooner rather than later.
To get the lowest rates and to have the most secure loans, homeowners should seek out the opportunities to buy into these markets offered by FHA loans.