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Prospect Financial Group, Inc.

2014 Home Sales

Wednesday, September 17, 2014 - Article by: Prospect Financial Group, Inc. - Message

The year 2014 started out with a weak first quarter. Recovering has been a slow process but has finally reached completion; as the sales form May are the highest of the year. Though sales are beginning to rise, mortgage rates remain low. Current rates are at 17-month lows. It is now common for lenders to quote rates in the 3's for traditional conforming loans.

Another thing that remains low is home values. The slow climb of values has been even more lethargic as of late. This, however, is boosting purchasing. With inflation below 2%, it's not surprising that property values are climbing at such a slow rate.

The National Association of REALTORS has released its May 2014 Existing Home Sales report and has shown that 4.89 million homes were sold during the month. This shows the highest reading of the whole year; but the 7th consecutive month in which home sales are down as compared to a year prior.

Another product of the National Association of REALTORS is the Pending Home Sales Index. This measures the number of U.S. homes which are under contract but haven't closed yet. The most recent index projected April's Existing Home Sales at 4.7-4.9 million homes sold; and the actual figure was at the head of that estimation.

Another thing on the rise is the national median home sale price. This figure has climbed 5% from last month, bringing the median price to $213,400. This keeps up with the trend in climbing home values. Big loan sizes are more and more common. Jumbo loans, which are defined by a loan that is $500,000, can be secured with a relatively small down payment and low mortgage rates.

The luxury market is open for business. With only 10% down, many people are getting larger loans than have ever been available.

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