- Posted August 23, 2013 by
Real Estate Recovery Continues – Existing Home Sales Surge
Another supporting element to the real estate recovery is the surge in existing home sales. July home resales in the U.S. hit their highest number in over three years. The latest report from the National Association of Realtors shows a jump in the number of existing home sales for July of 6.5 percent.
While industry experts are considering this latest report to be good news for the real estate recovery, they also note that the increase could also be due to the fact that more buyers are rushing into a purchase to buy before interest rates go higher. The July report was higher than what analysts’ had expected and therefore could add to the probability of the Federal Reserve winding down their stimulus programs. Already, discussions regarding plans for phasing out of the stimulus program have caused a slight increase in interest rates.
Even so, the impressive rise in home resales may have been slightly enhanced thanks to buyers getting into the market while rates are still low. It also signifies that slowly rising mortgage rates might not hurt much after all. Consumer confidence may win out in the end as more buyers feel real estate recovery optimism.
The July increase in home resales marks the fastest sales pace in three years. Continual improvements in job creation coupled with low interest rates and rising home values are all adding to the real estate recovery. Many industry experts believe that the remainder of 2013 could bring more fluctuation in real estate numbers as results of a strong Spring and early Summer market come to an end and mortgage rates continue to rise.