While existing home sales increased by two-percent in the South, existing home sales dropped 12.5 percent in the Northeast portion of the U.S. The national median home price increased to $168,700 in January, up from $160,000 during the same time last year.
Western states saw a decline of existing home sales in January of 5.7 percent from December of last year. The Midwest saw a decline of 13.2 percent from December. Inventories seemed to be down across the board. Why did most portions of the U.S. see such a decline? Here's an explanation from housing expert and National Association of Realtors head economist, David Lerah.
“Given the high level of sales in January, it’s hard to read much into a monthly decline. However, unusually bad weather in much of the country may have postponed some sales."
Given the increased sales that occurred in the Southern U.S., it's obvious that the weather did play a factor. Warmer climates did generally see home sale increases, while the colder regions saw decreased sales, but the sales numbers in most areas still exceeded last year's sale numbers, even if they did decrease from December of last year.
Speaking of December, Christmas gift spending sometimes slows home sales and other larger item purchases. January is a month during which many consumers often try to recover those costs.
Low interest rates will allow potential home buyers to fulfill their home dreams this year, and I suspect they will remain low until consumer confidence picks up and companies start hiring more workers. However, if the government starts reforming loan products, things could start moving in a direction that may not be as positive for potential borrowers seeking to purchase a home.
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