In the Market for Buying Homes? Now is Your Ideal Time
It is no understatement when we talk about the home buying market being in a slum in the recent years. But the time has come that it is all turning around because the sale of existing homes has reportedly jumped 7.7% in August. Up from 4.67 million homes in July, the National Association of Realtors states that a surprising 5.03 million homes have been sold this fiscal year.
According to the consensus estimates from Briefing.com, economists estimated the August sales rate to be at 4.7 million homes. But seemingly enough, sales have picked up as the prices of homes decline. The median price for an existing home was $168,300 in August, down 5.1% from a year ago. Even if you get a loan now and your home falls in value, you can still refinance your loan through the HARP Loan process.
Not all is on the brightside though in the home buying market. Banks have pulled back on lending in response to the rising home sales. “The biggest factors in keeping home sales from a healthy recovery are mortgages being denied to creditworthy buyers, and appraised valuations below the negotiated price,” said Ron Phipps, president of NAR, in a written statement. He then went on to recommend small regional banks and community banks as the best options for prospective home owners.
Lawrence Yun, NAR chief economist, states the rising cost of renting could also be a factor as to why more Americans are choosing to buy. But there are still those buyers who want to protect their assets from our unpredictable market. “Investors were more active in absorbing foreclosed properties. In addition to bargain hunting, some investors are in the market to hedge against higher inflation,” said Yun.
So now we ask, is the unexpected 18.6% surge from 4.24 million homes last year, enough to sway you into the home buying market? Or what are your thoughts as to what will happen in the near future to the sale of existing homes?