The housing market is finally in recovery mode. The National Association of Realtors (NAR) reports existing home prices have been rising for 20 straight months and existing-home sales are at the highest pace since November 2009.
Home prices are seeing their strongest gains since 2006. The combination of inventory shortages and increasing demand for new and existing homes has helped home values to rise up to the highest level in five years. Keep in mind that foreclosure sales, which sell at a discount are down. This has also helped boost home prices.
Many of the underwater homes are not underwater anymore. Sellers are in a more favorable position and calling the shots. Buyers are making full price offers to get the home they want. Multiple offers are also becoming common now. Even though mortgage rates have risen they are still attractive. This is in part due to the Feds Bond purchase program known as Quantitative Easing. It is predicted that the housing recovery is here to stay at least for the next five or so years.
Bottom line: Interest rates remain attractive and now is a great time to purchase a home.
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