Momentum in the Housing Market! According to reports from CNNMoney, in August the housing market picked up more momentum when the average home price for 20 major cities jumped 0.9%. The increase marked the fifth consecutive month of gains for the S&P/Case-Shiller home price index. The Case-Shiller report gauges housing market health which has turned upbeat in recent months. Low Mortgage Interest Rates and the slow improvement in the national economy have contributed significantly, creating Momentum in the Housing Market. Rates for a 30-year loan have remained below 3.7% since May. Low rates combined with home prices that are still a third less than they were at peak, have made home buying very affordable. In addition, inventory of homes for sale has fallen, developers have stepped up building activity, and new and existing home sales have been stronger. The Momentum in the Housing Market owes a lot to resurgence in investor demand. According to data from the National Association of Realtors, Investors looking to take advantage of the low prices to maintain a profit, now represent about 27% of the home purchases in the market. This Momentum in the Housing Market is a welcome sign, with some economists predicting that the housing market has finally made a turn upwards, including Chief Economist for Trulia, Jed Kolko, who predicts Rising prices are expected to continue. According to Trulia, the Momentum in the Housing Market is supported by recent data for September and October, which shows asking prices on homes have risen. Furthermore, they predict that Prices on Election Day will be almost the same as when Obama took office, most likely just 1.7% below where they were in January 2009.
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