First-time home buyers are eager to stop paying their landlords since the total cost of a mortgage + HOA fees + property taxes is frequently less than paying rent!
Chicago, IL (PRWEB) April 25, 2015
Lenders like Peoples Home Equity were excited to see that existing home sales for March had increased to the “highest annual rate in 18 months,” according to the latest April 22nd report from the National Association of Realtors.
Existing home sales for March spiked 6.1% from 4.89 million in February to 5.19 million in March. Year-to-date, this is the highest pace of existing home sales, also much higher than the average of 3.8 million from 1968 to 2015. To put it into perspective, existing home sales reached an all-time high of 7.25 million in September 2005 and a low of 1.37 million in March 1970.
Existing home sales have now “increased year-over-year for six consecutive months and are now 10.4 percent above a year ago, the highest annual increase since August 2013 (10.7 percent). March's sales increase was the largest monthly increase since December 2010 (6.2 percent)," according to the article. Peoples Home Equity was not surprised by this monthly increase because of January’s record 49.1% increase in mortgage applications. The lender has been receiving an onslaught of home loan submissions, mostly because of its business centering in the Midwest where existing home sales led the way in March.
Regionally, “existing-home sales jumped 10.1 percent to an annual rate of 1.20 million in March, and are now 12.1 percent above March 2014. The median price in the Midwest was $163,600, up 9.7 percent from a year ago,” according to the article. Peoples Home Equity finds that once the winter weather passes, especially in places like Chicago, home sales and prices nearly instantly rise. In the Northeast, sales increase 6.9% to an annual pace of 0.62 million while both sales and home prices are just 1.6% above year-ago levels. In the South, sales increased 3.8% to an annual pace of 2.19 million and are 11.7% above year-ago levels. Median sales prices are at $187,000, 9.3% above year-ago levels. In the West, sales increased 6.3% to an annual pace of 1.18 million, which is 11.3% above year-ago levels. The median sales price is now $305,000, which is 8.3% above what it was a year ago.
Peoples Home Equity expects continued positive reports in home sales this year. 2015 is expected to be the year where many Americans, especially younger first-time home buyers, are approved for a home loan. First-time home buyers have had enough time to find a job and save for a down payment since the recession. In addition, first-time home buyers are eager to stop paying their landlords since the total cost of a mortgage + HOA fees + property taxes is frequently less than paying rent! If you are interested in obtaining a home loan, now is a good time to lock in a rate. Peoples Home Equity expects the Federal Reserve to raise interest rates in the near future, possibly as soon as June, which would make a mortgage less affordable than it is now.
If you are in need of a mortgage, consider speaking to a Peoples Home Equity loan officer today at: 262-563-4026