The lack of housing inventory has created a market of high demand propping up home sale prices.
Chicago, IL (PRWEB) January 31, 2015
Peoples Home Equity, a lender with a large presence in the Midwest, was very pleased with this week’s National Home Sales Snapshot from DQnews.com. Both median home sales and median home sale prices have strengthened on a year-over-year basis despite the winter seasonal slump in the housing market.
On Thursday, DQnews.com reported that median home sales fell -2.5% to 204,512 for the week of 1/29. However, on a year-over-year basis sales increased from being up 3.7% on 1/22 to 4.1% on 1/29. Peoples Home Equity thinks the increase is reflective of Americans jumping on the opportunity of lower mortgage rates. This claim is supported by the fact that mortgage applications increased 49.1% for the week ending on January 9th. Unemployment has been falling long enough that Americans have had time to pay down their debts and save for a home since the recession. Lenders, like Peoples Home Equity are approving applicants and home sales are more frequent then last winter.
Median home sales prices also fell, but just -0.4%. Home sales prices have outperformed sales by a large margin over the past 2 years. The lack of housing inventory has created a market of high demand propping up home sale prices. On a year-over-year basis, median home sale prices have increased from 2.7% on 1/22 to up 3.2% on 1/29.
For those interested in purchasing a home, Peoples Home Equity hopes readers realize that with the increased number of Americans employed and credit scores rising, it’s only a matter of time before the housing market becomes even more active and competitive. This means higher prices in the future. With mortgage rates at historic lows, there is no better time than now to apply for a home loan. Also, the only way to purchase a home with financing is to be pre-approved for a home loan. Being pre-approved also helps applicants know how much they may borrow to filter their property search on price. So stop wasting time window shopping for homes and get pre-approved for a mortgage!
If in need of a mortgage, contact a Peoples Home Equity loan officer today at: 262-563-4026