The Real Estate market is on track to be the best since 2007, thanks to an ever growing job market and low mortgage rates. These factors result in price increases for homes as demand as grows, meaning a larger equity opportunity for homeowners. This resurgence of the US Real Estate market is a great sign for our economy, signalling that the economic recovery after the recession is reaching a point of stability. Buyers are becoming increasingly more confident, but also must act quickly as demand increases, in turn pushing home prices and mortgage rates up with it.
Just last month, sales of existing homes climbed 5.1%, and it was the third consecutive month of the sales rate exceeding 5 million homes, according to the National Association of Realtors. Listings have yet to meet this great demand however, meaning price gains grew as well.
One way reason the market has changed in the last year is because of the increase in first-time home buyers. In May, 32% of homes sold were to first-timers, a substantial growth from 27% at the same time last year. These first time buyers are most likely entering the market now due to a large increase in employment over the last year.
Mortgage rates are also relatively low currently, making a home purchase a more affordable investment. These rates are growing however, encouraging buyers to purchase now rather than later. The expected increase also means homes are selling quickly. 28% of homes are selling within two weeks according to a recent survey by Coldwell Banker.
The rising demand and rising prices of homes also means that many homeowners are opting to sell their current home to regain equity lost during the economic downturn, and then buy a new home.
Clearly, demand for real estate is growing substantially, making now the time to buy before prices and mortgage rates increase. Contact a RE/MAX Agent today to find the perfect home for you before someone else finds it first!
