The numbers recorded in June show that this is, indeed the highest rate at which homes are being bought since 2007. This is bad news for those who are planning to purchase a house in the future, because prices are also going up, along with the demand.
According to the National Association of Realtors, the sales of houses on the market rose by 3.2 percent in June. This adds up to an annual rate of 5.49 million, which is the highest rise since February 2007. Over the past 12 months, sales have increased by almost 10 percent. However, the number of listings has increased just by 0.4 percent.
Even if this might be good news for those working in the real estate business, the ones who have not found their dream house yet should know that the prices are going up by the month. Over the past year, the price for a house has risen by 6.5 percent.
It is no surprise that the demand is higher this year, given the fact that economy is boosting again, more people are being hired. Having a job also means having a sense of financial security. This is why more people are confident that they can afford to buy a home.
However, owners seem to be reluctant to put their properties on the market, which leaves potential customers with fewer options. This could affect sales in the following months.
” The recent pace can’t be sustained, but it points clearly to upside potential,” stated Ian Shepherdson, who is a chief economist working at Pantheon Macroeconomics.
It was reported that at the national level, only a 5 months’ supply was available in June. This is nothing compared to last year’s 51 per 2 months.
But what caused this sudden burst in sales, one might wonder. It seems that people are afraid they will have to pay more for their mortgage rates in the future, since Fed officials are looking to increase a key interest rate later on this year.
The limited supplies might have also contributed to buyers’ interest in purchasing homes. However, as the supply decreases, so will the sales, given that prices for accommodation are likely to go up again.
In fact, reports show that while the average hourly wage has only gone up by 2 percent over the past 12 months, home prices are three times higher than the average American’s income.
About 63.8 percent of U.S. citizens own a home, which is an incredibly low level, the lowest since 1989.
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