Over the past couple of months the housing data that has been released suggests that a housing recovery is near or it may be said that it is already underway. A “perfect storm” for a housing turn around has been created by the combination of low current mortgage rates along with historically high home affordability and the first-time home buyer tax credit of $8,000.
Housing sales are increasing, the price of homes has been at the rise in the past five months in a row and for both new home and existing homes the supply of homes for sale are down. Here you should keep in mind that this improved housing data is occurring during a recession, raising unemployment and a slight uptick in mortgage rates in the past few weeks, there are even more reason to presume that a turn around has started.
Even it is believed by the Chinese government that the U.S. has hit bottom in the housing market. The government’s sovereign wealth fund, China Investment Corp, through the U.S. Treasury-backed Public-Private Investment Plan (PPIP) is going to buy up to $2 billion in U.S. mortgage securities.
As the demands for homes are becoming more stronger so it has eaten into the supply of homes for sale. The available existing homes for sale would take almost 11.3 months to sell a year ago, but now as of June the supply of existing houses for sale would take just 9.4 months to sell. The supply of new homes for sale is also down, it would take over 12 months this past January to sell all the new homes available, as of the past June it would take only 8.8 months to sell all the new homes in inventory.
If you are planning to buy a new home then probably this is the right time the time to do it. Today’s mortgage rates will be higher as the year goes on and the price of a home will also be higher.
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