The market is really doing very, very well so far in the first six months of the year. Total home sales are up 5% compared with the first half of 2015, meaning existing home prices are up 5%, setting a new record. Overall, we had the best spring in a decade, and a summer which is looking pretty good also.
Let’s take a look at this summer versus last summer. Demand for housing this summer is up 13%, according to Realtor.com, while supply of homes for sale is down 5%. So, we’re still not out of the woods yet. But, we know there’s still a lot of excitement about people purchasing homes.
In the latest homebuyer pulse survey, and these are the people that were not currently homeowners but are considering purchasing a home in the next five years. This is what the survey showed:
Seventy-seven percent cited mortgage rates as the most important factor when purchasing a home. Mortgage rates leveled out and actually starting to pick up a little bit. That could cause another wave of buyers coming to the market. Thirty-five percent of millennials are putting less than 20% down payment. That’s good news, the more they get educated to the fact that they don’t need 20% down, the easier it’s going to be for us to help them. Sixty-three percent will buy a home in the next two years with 21% currently looking.
A Gallup poll a couple of months ago and the recent bank rate financial security index showed that Real Estate is still Americans choice for best long term investment. They picked that over stocks and mutual funds, gold, savings accounts, and CDs and bonds.
So, ladies and gentlemen, the numbers perfectly show that either for people purchasing their first house or people moving up into their dream home – people still believe in the American dream – not just from the social benefits of owning a home, but also for it’s the financial benefits.