Three Statistics that Indicate We’re in a Seller’s Market
- Mortgage applications have increased 6.6%.
According to the National Association of Realtors, “this increase in applications reflect stronger interest in home ownership through strong gains among young adults.” These young adults represent fist-time home buyers that are taking advantage of low interest rates while they still can. Housing market data indicates that interest rates have remained relatively low, but are projected to increase over 4% by spring of next year. This affordability has led to a spike in home loan applications, particularly buyers purchasing FHA loans – low down payment loans typically used by first-time home buyers. Loan programs like this, steady job growth and an improving economy have given prospective buyers the financial wealth and incentive to buy a home.
- Homes are selling 13% above their original purchase price.
According to Zillow, the median home sale price is $215,177. Positive developments in the economy have brought a new pool of buyers to the market. In addition to first-time home buyers, home owners whose home were originally foreclosed on, and traditional owner-occupant home owners. This rise demand have caused home prices to skyrocket. Along with a boost in home prices last month, existing-home sales have reached the highest pace in more than eight years, according to Lawrence Yun, NAR’s chief economist.
- Homes are on the market for 34 days.
Inventories of for-sale homes remains tight, which has forced buyers to have to compete for the limited supply. “Limited inventory amidst strong demand continues to push home prices higher,” according to the National Association of Realtors. “With inventories still low, properties are selling faster. Forty-seven percent of homes sold in less than a month in June, according to NAR. Properties typically stayed on the market for 34 days in June, the shortest number of days since NAR began tracking in May 2011.
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