Chicago, IL (PRWEB) May 22, 2014
Existing home sales for April were announced by the National Association of Realtors (NAR) on Thursday, May 22nd. The report showed an increase in existing home sales which was enlightening for mortgage lenders like Peoples Home Equity to see.
April existing home sales rose to 4.65 million, monthly rise of 1.3% off of March’s annual low at 4.59 million. Not only does this April number represent a rebound off the lows but also the beginning of a new uptrend which is expected to last through September. Peoples Home Equity notes that April sales were the highest recorded for 2014, subsequent announcements for May and June are expected to be even higher, especially since weekly home sales are rising relentlessly.
Regionally, existing-home sales remained unchanged in the northeast at an annual rate of 600,000 in April, but are 6.3 percent below April 2013. “The median price in the Northeast was $244,000, down 0.4 percent from a year ago. Existing-home sales in the Midwest, where Peoples Home Equity centers most of its business, slipped 1.0 percent in April to a pace of 1.03 million, and are 9.6 percent below a year ago. The median price in the Midwest was $157,200, which is 5.8 percent above April 2013. In the South, existing-home sales increased 1.0 percent to an annual level of 1.94 million in April, but are 3.5 percent below April 2013. The median price in the South was $173,200, up 3.2 percent from a year ago. Existing-home sales in the West rose 4.9 percent to a pace of 1.08 million in April, but are 10.0 percent below a year ago. The median price in the West was $291,200, which is 9.7 percent above April 2013.” One can see that the west is causing most of the gains for the nation. As for the type of sales, 10% of all April existing home sales were foreclosures and 5%were short sales. “Foreclosures sold for an average discount of 16 percent below market value in April, while short sales were discounted 10 percent.”
Another positive in the NAR announcement was that “Total housing inventory2 at the end of April jumped 16.8 percent to 2.29 million existing homes available for sale, which represents a 5.9-month supply at the current sales pace, up from 5.1 months in March. Unsold inventory is 6.5 percent higher than a year ago, when there was a 5.2-month supply.” This increase in inventory is beneficial for home buyers as it will slow the rising pace of home prices. Meanwhile buyers are also getting another break as mortgage rates have declined of the past month. MortgageNewsDaily.com showed on its daily mortgage rates page that the rate on a 30-year fixed rate loan closed at 4.16% for May 22nd. If rates continue lower and cross below 4% soon, then Peoples Home equity expects an even stronger jump in existing home sales for May.
If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: 262-563-4026