NAR Chief Economist lawrence Yun be-believes that aftordability conditions are very good for the housing market "Mortgage interest rates have been at record lows this year, while rents have been rising at faster rates. Combined, these factors are helping to unleash a pent-up demand." Yun said. "However, the
market is constrained by unnecessarv tight lending standards
and shrinking inventory supplies, so housing could easily be much stronger without these abnormal frictions
The urgency to buy now is increased with Mortgage rates at 3.50% , some of the lowest
rates on record since 1971 indicating rates have finally hit bottom...
While home sales grew 2.3 % from last month , year-over- year sales increased 10.4.%. According to the National Association of Realtors, existing home sales rose in July with the national median sales price reaching five consecutive months of year-aver-year
growth
The median home price fell 1 from last month, but rose 9.4 compared to a year ago to $187,300. This marks the fifth consecutive month of year-over-year price gains, which has not been seen since the period January to May 2006. July's gains are the most robust since January of 2006 when median home prices rose 10.2 % from 2005.
Housing inventory increased 1..3 % in July to 2.4 million homes avaiiable for sale, a 6.4-month supply. This marks the eighth consecutive month of inventory at a 6- month supply which is the threshold for a balanced market, giving both buyers and sellers an equal advantage. As supply continues to hold steady at more balanced levels, so does the idea that the housing market is moving closer-to a full scale recovery
Nancy M. Alexander Stone Harbor and Avalon NJ Real Estate
