The Unexpected Fall in Sales of Homes As of July
According to the Department of Commerce, it was see that from one month to another, a fall in the prices of home fell with about 7.8 percent to attain and annualized pace of about 626,600 and as for last Year the changes was seen to be in about 3.7 percent The April pace move upward in a little way and these brings about a fall in price from a $335,100 for the previous month of April to the new month price of $308,000 in May as the median price and also we have the average price that fall from $386,500 to $377,200 And one of the major reason for most of this fall in price maybe attributed to the fall in the mortgage interest rate which do not help much in the purchase of houses by buyers.
Although supply of houses that are available for rent available for sale are seen to have increase from 5.9 to 6.4 percent. And this increase in the number of available houses and non significant increase in the mortgage interest rate could also be a reason for you not to have a good purchase of houses.
Also in April, we have a fall in the prices of homes compared to that of march as well of about 0.4 percent with a seasonal annualized rate of 5.19 million units. The current sales we have now makes up of about 90 percent we have now in total market sales and nothwithstanding the comstruction companies are still producing normally in there buildings and all. The average rate on the 30 year fixed drop in the recent time as been targetted to an expectation rise in sales.
We are faced with low mortgage rate and together with people unwillingness to secure a purchase, therefore the buyers take all this as an opportunity and excuse in other not to make any formn of purchase whatsoever again. Although for now there have been more opportunity interms of job creation which invariably makes the prices of mortgage to align with what you are getting as an income and it is expected that this may inturn increase the number of home buyers.
The increase in homes for sale have keep on rising to upto about 1.7 percent annually, apparently we have that most of the houses sold in recent times have been in the market for less than a month, and more or so compared to the former months, we can see that the inventory totals have steadily increase in the number of homes available for sell and this means that the buyers can now have as many options as they wish.
And we expect now that, when house owners are trying to put there house on sale, they should be very realistic and much more considerate in the prices they attach on there houses for sell, they should trying and put into comsiderations the current conditions and situation that the people are in.
Because of the increases that are recorded in the number of homes that have been put in place for sell, it increase the supply for homes even though this increase in supply those not really have effect in the prospect of the sales in the nearest future.
The expectation still remains for the house sales to increase well in the coming month with so much optimism that it will because of the favourable market conditions and accelerating wage growth that have been experience in the country in the recent years.
In coclusion we can say therefore that this fall in the sales of homes could be attributed to low mortgage interests rates which do not permit the purchase of these homes, however good wages and conditions available in the U.S now make us to be very sure of more increase in the sales of home in the nearest future.
1. U.S New Home Sales Fall More Rapidly Than Expected in May. https://www.sharecast.com/news/international-economic/us-new-home-sales-fall-more-sharply-than-expected-in-may–6757314.html
2. Home Sales Fell in April Despite A Big Drop In Mortgage Rate. https://www.cnbc.com/2019/05/21/home-sales-fell-in-april-despite-a-big-drop-in-mortgage-rates.html
Image Credit: Realtor.com