Decreasing interest rates increases sales

By Mark Abromaitis
THE ERICKSON TRIBUNE

According to the most recent information released by the National Association of Realtors (NAR), the housing market is looking up. The sale of U.S. homes increased in the month of February, which was the first the housing market has seen since mid-2007.

Many real estate experts say that the upturn signifies the beginning of a turnaround for the market.

A sign of things to come
Lawrence Yun, chief economist for the NAR, says the gain is encouraging. He expects it to be a sign of things to come.

“We were not expecting a notable gain in existinghome sales until the second half of this year, but [this] improvement is another sign that the market is stabilizing,” he says. The NAR report says existing-home sales in the Northeast, including the Philadelphia area, jumped 11.3% during the month.

The median price of a home in the region was $264,800, up 0.4 % from a year ago. Few real estate agents know the Philadelphia market better than Maureen

Hughes of Keller Williams. Having been a licensed Realtor for over 18 years, she has such a good track record that 72% of her clients are repeat or referral business.

Hughes says, “Right now the supply of homes still exceeds the demand, but if it’s priced just right, you’ll sell.”

Market status
“During the downturn, prices of homes were set too high,” Hughes explains. “The homes weren’t appraising for those huge asking prices, and buyers were having a harder and harder time securing a mortgage loan.”

But a few factors have changed since then.

“Buyers taking advantage of higher loan limits for both FHA (Federal Housing Administration) and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year,” Yun explains.