Mortgage Rate Hike to Boost Market

posted on July 15th, 2013 | filed under: Uncategorized

Trends At A Glance - JulyAs we mentioned last month, mortgage rates are on the rise. What we didn’t expect, and I don’t think anyone else did either, was that they would jump by half a point in three days.

Now, mortgage rates are at their highest level in the past two years.

Initially, when mortgage rates begin increasing, many buyers who have been on the fence come into the market thereby boosting demand.

We expect sales and prices to increase over the next two months.

JUNE MARKET STATISTICS

The median price for single-family, re-sale home jumped 24% year-over-year. At $465,000, it is at the highest level since December 2007.  Sales of were off 7.1% year-over-year. Home sales had been higher than the year before for twenty-three straight months. Year-to-date, home sales are up 5.3%. Inventory remains problematic. There is only a ten week supply.

Pending sales were up 9% compared to last June.

SALES MOMENTUM…

for homes fell 1.7 points to +9.4. Condo sales momentum dipped 0.1 of a point to +4.1.

PRICING MOMENTUM…

made another solid gain last month, rising 1.5 points to +13.1. Condo pricing momentum gained 1.5 points to +20.1.

MOMENTUN…

is calculated by using a 12-month moving average to eliminate seasonality. By comparing this year’s 12-month moving average to last year’s, we get a  percentage showing market momentum.

CONDO STATISTICS…

The median price for condos was up 34.6% yearover-year. That’s twelve months in a row the median price has risen by double-digits.

Sales were off 1.9% from last June. The sales price to list price ratio for condos stayed over 100% for the fifth month in a row: 100.6%.

To read the full report on-line, go to: http://dechamplain.rereport.com

 

 

posted by Jeff DeChamplain

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Jeff DeChamplain