Here is a housing market update. Some new stats came in this week which supports the idea that the housing market is in the recovery process. Home sales and prices are on the upswing compared to the same time last year which is good for a few reasons. First of all home buyers and sellers are becoming more confident with their decisions. Since actual facts are showing us that there is improvement, people can get more comfortable. For buyers, new home ownership is looking more and more like a solid investment; for sellers, the realization that buyers are more confident and home prices are on the upswing means there will be more of a demand, which means all the sellers that have been holding off until the market "bottomed out" have now realized that the market has already "bottomed out." Also, home builders are coming to the same realization that sellers have come to in the sense of the market "bottoming out", which builds confidence with home builders. More confidence means more homes on the market and an increase of inventory would satisfy the large amount of buyers out there. although nothing is set in stone, this is definitely a good sign and a step in the right direction for the housing market. Here are the facts:
- existing home sales have sky-rocketed nearly 8% from last year
- median home price is 187,400 (9.5% increase from levels a year ago)
- 6 consecutive months of home price increases
- new home market is showing signs of recovery with starts rising approximately 29% from a year ago
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