July Home Sales and Prices Spike to Record Highs!

According to the National Association of Realtors (NAR), sales of existing homes spiked 24.7% from June to July.  This record surge represents the strongest monthly gain in the history of the survey, going back to 1968.  In addition, it’s the highest sales pace since December of 2006.  With interest rates remaining historically low, buyers are extremely eager to purchase right now.  The only thing holding them back appears to be the supply of homes on the market, which has dropped 21.1% annually.

Also hitting record highs is the median home price, which rose 8.5% annually in July to $304,100.  This value represents the highest nominal price on record, and also warrants the highest price when adjusted for inflation.  When adjusted for inflation, the median home price is 3.4% higher than the bubble high set in 2006.  As with record existing home sales, low interest rates are a big catalyst in driving up home prices, due to the fact the low rates represent more purchasing power for home buyers allowing them to purchase higher priced homes with a lower payment.

Call your Advisors Mortgage Loan Officer today to discuss the current market in more detail and to learn what you qualify for.