Home sales declined in January to their lowest rate in nine months while home prices increased, the NAR said.
Sales of previously owned homes dropped 4.9% to a seasonally adjusted annual rate of 4.82 million in January, the lowest sales volume since April. The median price of a house in January increased 6.2% to $199,600 year over year, according to the NAR. Inventory is to blame.
Low inventory is measured by the number of houses available for sale. Total housing inventory at the end of January increased 0.5% to 1.87 million, but that is still 0.5% lower than a year ago, when it was 1.88 million, according to NAR. Please feel free to comment on our BLOG!!!!!
Mortgage interest rates have fallen back to 2013 levels this week. Fewer homes are available for sale leading to a slight increase in prices. With mortgage rates still low buying activity has been increasing. Mortgage applications for Federal Housing Administration loans spiked last week in the midst of lower FHA mortgage insurance premiums, according to the Mortgage Bankers Association. Both purchase and refinance activity are up, signaling higher demand for housing.
With rates low and prices still good, now is an excellent time to look at purchasing a home. Current homeowners should take a look at their equity gains for the past view years and consider trading up for a better home.