Existing Home Sales Up 4.9% in May
In the greatest gain since October, the housing market posted a 4.9 percent increase in existing home sales. The May increase propelled us right into the Summer selling season and is fueling a lot of excitement for the improved buying and selling opportunities.
Stabilized Interest Rates
There has been a lot of volatility with rates over the last year. It all started with the Federal Reserve announcing a reduction in their $85 billion asset purchasing program. SInce then there has been political and economic unrest and at times even chaos. After a year of volatility, it appears as though rates have finally stabilized to more manageable levels.
Across the country and especially in the Pacific Northwest, we saw small inventory increases. While the numbers aren’t reason to shout for joy, they do signal positive changes moving forward.
Slower Pace of Home Price Increases
As we finally began to come out of the recession, it seemed as though we were launched out it. Home values increased at their fastest pace in years as homeowners were coming out from underwater. This helped push inventories up and gave a little bit of breathing room for the housing market. We’re now seeing a gradual slowing of the rate at which home values are increasing. Many people have expressed concern that it could be a sign of another bubble bursting, but many economist agree that the change is simple a move to a more sustainable rate of increase.