The winter season may not see as much of a seasonal decline in home sales as presumed
Chicago, IL (PRWEB) August 30, 2014
Peoples Home Equity was intrigued by an August 29th article by Bloomberg titled “Housing Stumbling in Slowest Season for U.S. Mortgages.” The article begins with “just when the stumbling U.S. housing market could use a boost, it’s entering the slowest period of the year." Peoples Home Equity found this statement a bit premature because housing market still has a chance of surpassing 2013’s number of home sales at least in the next month of September.
This week the market witnessed for the first time that mortgage applications rose for two consecutive weeks. In addition, weekly home sales rose 1.8% while home sale prices declined -1.1%, as cited in the latest “National Home Sales Snapshot” by DQnews.com. Weekly home sales are now -3.5% shy of 2013’s peak. While this gap has widened from being as narrow as just -0.7% during the week of August 14th, Peoples Home Equity thinks there is a chance that housing may shine brighter in September. The combination of lower median home sale prices and the consecutive rise in mortgage applications over the past week may lead to a surprisingly great performance of September home sales.
Looking past September, Peoples Home Equity believes US real estate may show seasonal strength in the fall and winter. Labor markets have improved; more Americans are employed as the unemployment rate stands at a much improved 6.2%. With more Americans able to afford a mortgage, the winter season may not see as much of a seasonal decline in home sales as presumed. Home prices should certainly remain strong through the fall and winter with the continued imbalance of higher demand and low inventory.
Peoples Home Equity encourages all readers who are thinking to purchase a home but unsure where to start to visit the lender’s “calculators” page. The website has a great “monthly payment calculator” gives prospective mortgage applicants a good idea how much a home loan would cost.
Contact a Peoples Home Equity loan officer today at: 262-563-4026