Nationwide, home sales are having their best year since 2007. Low mortgage rates and a stronger job market are luring first-time buyers as well as repeat buyers back into the market. Nela Richardson, economist at the brokerage Redfin said,
“What we’ve seen is that demand is off the charts in 2015 — and that is really boosting sales. Last year, buyers were dipping their toes in their water. Now, they’re diving in.”
The National Association of Realtors reported that sales of existing homes climbed 5.1 percent last month to a seasonally adjusted rate of 5.35 million. While the Counselors of Real Estate say the most important trends to watch over the next year are retiring baby boomers and aging millennials, there are several other factors that help explain the surge in the housing market.
- The job market is increasing. Employers have hired 3.1 million additional workers in the past year causing the unemployment rate to decrease from 6.3 percent to 5.5. The influx of additional paychecks has caused more Americans to feel financially secure after experiencing the most significant downturn since the 1930s.
- Buyers feel the need to act quickly. While mortgage rates are low, they are beginning to rise due to the Federal Reserve preparing for an increase in the key interest rate. This is causing many buyers to feel as though they need to act quickly before rates and prices increase further.
- Buyers have more to spend due to equity. Homeowners are beginning to regain the equity lost in their homes during the downturn. While supplies still remain tight, more mortgage holders are recovering equity, therefore more of them can afford to sell their home and use the proceeds to buy a new home.
When you are ready to make the move to buy a new home or refinance your current home, I would love to help you! Call me today to set up an appointment.
Boak, J. Veiga, A. “Here’s why home sales are finally surging”. Web Blog Post. WSOCTV. 22 Jun 2015. Web. 30 Jun 2015.