If you’ve been weighing whether now is the right time to enter the local housing market as a home buyer, we have some news to share with you that will help you decide.
According to a recent report from real estate data provider CoreLogic, U.S. home price gains are slowing down, despite an increase during the month of August.
This is great news for home buyers because it means that you have a fantastic opportunity to get a reasonable price on your next home before prices continue to rise!
What Every Home Buyer Should Know About Recent US Housing Market Activity
CoreLogic reported that home prices increased 6.4 percent in August when compared to last year.
Still, that figure is actually down slightly from the annual gain of 6.8 percent in July.
Here’s what else the recent housing market report revealed:
- The increase in home prices is also down when compared to how much they had been rising toward the end of last year. During that time, prices were rising as much as 12 percent.
- Home sales have been mostly stable throughout 2014, as have price gains.
- All states showed home price gains during the month of August, save for Arkansas where prices were stagnate.
- Home values rose 11.1 percent in Michigan, which led the pack. And values in California and Nevada came in second place with 9.2 percent.
- In terms of specific cities, the Houston area saw home values increase 11.1 percent compared to the previous year. Los Angeles, Atlanta, Dallas and Riverside also saw large gains.
- Home prices nationwide remain about 12.1 percent below their peak average in April 2006.
- Home purchases decreased 1.8 percent to a seasonally adjusted annual rate of 5.05 million in August.
- Home sales decreased from a July rate of 5.14 million.
- Meanwhile, the pace of home sales dropped 5.3 percent year-over-year.
- Experts say that an annual sales rate of 5.5 million is considered a healthy market.
- Meanwhile, the median sales price has increased 4.8 percent over the last 12 months to $219,800, although that average dropped slightly during the month of August when compared to July and June.
Experts say that most of any uptick in sales activity (and thus, values) on the national housing market would depend on wage growth. That’s because wages are currently neck-in-neck with inflation, making it hard for home buyers to increase in buying power.
Still, there’s hope on the horizon:
Although hourly wages have only increased 2.3 percent over the last 12 months, there are signs that that activity will pick up in 2015.
Use Recent Activity on the National Housing Market to Your Advantage
As you can see, the market has stabilized itself enough where you could purchase a home and get a pretty good return on your investment as values eventually continue to rise.
So if you’re thinking about investing in real estate anytime soon, now is the time to do so!
And be sure to check back here soon as we continue to discuss with you important real estate trends that impact you!
We’re breaking records on the U.S. housing market!
Evidently, during the month of August, national home sales reached their highest levels in more than six years, according to a recent report from the Commerce Department.
This is incredible! That means that sales activity has returned to the levels it was pre-bubble burst. And this spells great success for anyone interested in listing their home on the market.
A Closer Look at US Home Data
According to Commerce Department figures, new home sales jumped 18 percent to a 504,000 annualized rate, which is the strongest it’s been since May 2008.
Not only that, but this rate is even higher than the highest forecast made by a Bloomberg survey of economists.
This one-month increase shattered a 22-year record. That’s because the last time the US housing market saw a one-month increase this big was 1992.
Here’s what else the Commerce Department revealed in its report:
- Economists surveyed in the Bloomberg report said the pace would increase between 405,000 and 455,000.
- The median forecast of 74 economists was that the pace would increase 430,000.
- The median sales price of a new house increased 8 percent year over year in August, to $275,600
- Home purchases increased in three of four U.S. regions. The West led the group with a 50 percent jump.
- The housing inventory (given the current sales rate) dropped to 4.8 months from 5.6 months in July.
- There were 203,000 new houses on the market at the end of August.
- Existing home sales decreased 1.8 percent to a 5.05 million annual pace last month. This occurred after existing home sales reached a 10-month high of 5.14 million in July.
- Housing starts decreased 14.4 percent to a 956,000 annualized rate. This occurred after July’s 1.12 million pace was the strongest it’s been since November 2007.
Canada Home Sales See Encouraging Numbers as Well
- Canadian national home sales increased 1.8 percent from July to August.
- Actual (not seasonally adjusted) activity were 2.1 percent above August 2013 levels.
- The number of newly listed homes decreased 1.2 percent between July to August.
- The MLS Home Price Index increased 5.3 percent in August when compared to last year.
- The national average sale price also increased 5.3 percent in August when compared to last year.
Moving The US Real Estate Market Forward
Experts say that the housing market has been growing in fits and starts but that steady growth is what will be needed in the long-term to effectively stabilize the market.
Still, home sellers can be encouraged by these recent numbers as they do demonstrate that the market is headed in the right direction!
Check back here soon as we continue to watch the housing market, looking for trends that impact you as home buyers and sellers.