Home sales and prices at record highs and rising
The National Association of Realtors (NAR) has forecasted an all time record in home sales for the year 2005 for both existing and new home sales.
The report concludes existing home sales this year will rise 2.8% to 6.97 million, while new home sales should increase 3.2% to 1.24 million. This year is also setting records with over 1.68 million homes plotted for new construction.
Why all the rapid growth?
The answers are simple: several homeowners are now able to achieve the American Dream due to the mortgage interest rates remaining lower than expected as well as the readily available low and no down- payment programs offering first time buyers who may not necessarily have money for an upfront payment more options. The employment rate is also beginning to grow.
There are drawbacks to an over stimulated market. The most notable problem is the shortage of homes available for sale as well as building material shortages. The shortages can prove to be a challenge for home buyers, builders and remodelers. The result can cause a rise in building costs and then ripple into higher home prices.
NAR expects the national median home price to rise 9.4% this year to $202,600 and new home prices to increase 5.8% to $233,900.
The report concludes existing home sales this year will rise 2.8% to 6.97 million, while new home sales should increase 3.2% to 1.24 million. This year is also setting records with over 1.68 million homes plotted for new construction.
Why all the rapid growth?
The answers are simple: several homeowners are now able to achieve the American Dream due to the mortgage interest rates remaining lower than expected as well as the readily available low and no down- payment programs offering first time buyers who may not necessarily have money for an upfront payment more options. The employment rate is also beginning to grow.
There are drawbacks to an over stimulated market. The most notable problem is the shortage of homes available for sale as well as building material shortages. The shortages can prove to be a challenge for home buyers, builders and remodelers. The result can cause a rise in building costs and then ripple into higher home prices.
NAR expects the national median home price to rise 9.4% this year to $202,600 and new home prices to increase 5.8% to $233,900.
posted by Christina at 7:33 PM
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