What Is Expected In 2015 For Home Buyers
The National Association of Realtors, referred to NAR, keeps track of the housing statistics of the housing date and housing market every month in the United States. One of the key housing data the National Association of Realtors keeps track of is the home sales every month. The data accumulated and reported by the National Association of Realtors is gathered and compiled nationally from data reported by the MLS, Multiple Listing Service. The compilation for the results of the date from the National Association of Realtors includes sales from single family properties, townhomes, condominiums, and co-ops. The National Association of Realtors does not include properties that were not listed on a local or regional Multiple Listing Service.
Data Released From The NAR
The National Association of Realtors released disappointing numbers for November 2014. However, data released for December 2015 were strong where it made 2014 finish on a strong finish and rallied the January 2015 numbers and convinced most real estate and housing experts to predict a strong 2015 housing buyer’s market. It is not just real estate analysts that are predicting a strong year for 2015 for the United States housing market but also economist and the mortgage experts are predicting the same outcome even with the rumor that mortgage rates will spike the second half of the year. This is great news for home sellers.
Home Sales Statistics
Home sales for the month of December 2014 has gone up 2.4% to a adjusted annual rate of 5.04 million compared from the November 2014 figures of 4.92 million. December 2014 rates were up by 3.5% from December 2013 rates. The spring will most likely bring an extremely strong sellers market.
Inventory of housing has dropped 11.1% in December 2014 to 1.85 million of existing housing available that were for sale.
Foreclosure rates and short sale rates were slightly increased in December 2014 to 11% from November 2014 statistics of 9%. However, the good news is that both foreclosure rates and short sale rates were dropped 14% from the same time of 2013 figures.
FHA Lowered Annual Mortgage Insurance Premium
FHA reduced its annual FHA mortgage insurance premium from 1.35% to 0.85% on January 26, 2015 which fueled FHA streamline mortgage refinances and triggered an increase of potential home buyers seeking pre-approvals from mortgage companies. To add fuel to the fire in triggering more home buyers to act, Fannie Mae and Freddie Mac has brought back the 3% down payment conventional loan for home buyers to promote homeownership and compete with FHA lowering the FHA annual mortgage insurance premium. The third factor where 2015 will be a stellar year for the housing market is the fact that mortgage rates are at a 22 month low. There are talks of the Federal Reserve Board increasing mortgage rates in the second half of 2015, but with all the other positive factors in the housing and mortgage markets, experts feel that is will have little impact on a stellar 2015 housing market and record home sales.