Market update January 2014

INFO THAT HITS US WHERE WE LIVE... Confirming the insight of the Hibernian bard, the housing market happily kept growing in December. Existing Homes Sales went up 1.0%, to a 4.87 million annual rate. For all of 2013, 5.09 million existing homes were sold, up 8.9% from 2012, and the best annual sales level since 2006. Yes, existing home sales have slowed over the past few months, but this situation is not expected to last. Analysts observe that a lack of inventory has been leading some potential existing home buyers to purchase new homes instead. Existing home inventories, in fact, dropped 9.3% in December, close to all-time lows. Observers see more homes coming onto the market this year, as prices move higher. Right now, existing home median prices are up 9.9% versus a year ago, to $198,000. Average prices are up 8.6% over last year. The FHFA index of prices for homes financed with conforming mortgages went up 0.1% in November. This was the smallest hike in 16 months, but the index is up 7.6% over a year ago. Economists expect home prices to keep edging up, though not as much as last year. They feel that as home builders ramp up, the additional supply will slow the rate of price gains compared to last year. CLICK HERE TO READ ENTIRE ARTICLE BY GUILD MORTGAGE