Positive Signs in US Economy Directly Effect US Housing Market
- · Consumer Spending Up
- · Job Creation Steady and Increasing
- · Interest Rates Are Still Low
- · More Home Inventory Coming to Market From Builders (New Construction)
2014 Real Estate Market Summary
- · Across the US, the prices for homes continue to rise.
- · Interest rates according to Freddie Mac average currently at 4.16%
- · First time home buyers are hovering at less than 30% for the last year to year and a half.
- · Decreasing Investor Activity in Market Currently
September 2014, existing home sales (SFR, condo, townhomes, and co-ops) at highest sales pace for the year. Went from 5.05 million homes sold in August 2014, to 5.17 million homes sold in September 2014. This is a 2.4% increase from August to September 2014. However, from a national perspective, we are still 1.7% below September in 2013.
Demand from home buyers still strong. The combination of low interest rates and home values increasing in the market have contributed to this September 2014 gain. As of October 2014, there are fewer Investor buyers in market. Investor home purchases account for about 14% of all home sales. 64% of those investor home purchases were all-cash.
Foreclosures, short sales and REO bank owned homes are selling for about 14% off Fair Market Value. The inventory of foreclosures is still very low at around 10% of all the market’s combined inventory.
Existing Condominium / Co-Op sales steadily increasing at 5.2% with median condo prices up 3.2% higher than in 2013.
Existing Home Sales in the West Coast of the country has proven to be the strongest market in the country at a 7.1% increase vs. the next highest which is the Midwest at 5.6% increase. The national average for existing home sales is still down from 2013 as a whole.