The Economy is Improving; Good News for the Housing Market.
June marks the year’s halfway point. It’s a good time to reflect and analyze the latest market data to determine where the market is headed for the remainder of the year.
According to a report released by Fannie Mae early June, the 2015 Housing Marketing has undergone some positive developments since the beginning of the year. Moderate rebound in economic growth has been driven by continued strengthening in employment and household income.
After a slow start, existing-home sales rose 5.1% in the second quarter to an adjusted annual rate of 5.35 million homes. According to the National Association of Realtors, sales have increased year-over-year for eight consecutive months and are 9.2% above a year ago (4.90 million). First-time home-buyers attributed to these numbers as the result of many economic factors including; low mortgage rates, job growth coupled with low unemployment rates, and wage growth.
Average home prices climbed 7.9% over the past 12 months to $228,700, about $1,700 shy of the July 2006 peak. The higher home prices will continue to climb if inventory does not pickup to match demand. Currently, the market has just 5.1 months’ supply of homes, versus an average of six months in a healthy market.
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