Probably was due to last year very slow winter, very colder winter in Chicago. But It's also due to the high record levels of demand we are seeing across the country in the Midwest particularly. Buyers are ready to buy in 2015 and we think this is the best year yet since the bust!
- Home buyer demand is high
- Motivated by rate hike anticipation
It's interesting when we look at pretty much every group was up except for 1 million dollar plus homes in the south. Also includes Texas, so we think that got hurt and some of the very low end in California. Is there any rationales as to why certain regions were literally just booming off the charts? Well, some reasons it has to do with inventory. If you have a lot of homes for sale then you're going to get out a lot of home sales. Now in the million dollar price point in Texas there just not a lot of those homes for sale and in California especially. There's very little on the lower end of the market. Why? Because we had distressed homes, we had investors come in and buy all that up. Of course California median homes prices are much more higher than they are in the rest of the nation. So your just not going to see sales in that region. It's an inventory numbers game. But inventory is still very tight, pushing those prices you want to keep an eye on those!
There's a school of thought out there that basically home sales are booming because everybody is freakin out about the potential high rates they are rushing in now! Is there any truth to that? That's one the the reasons we think but this time last year people were just sticking their toe in the water. They were still unsure about the housing market this year their diving right in! Why? They have a reasons that mortgage rates may go up by the end of the year. Means that people are getting off the side lines and diving right in and trying to lock in those low rates right now. Do we see a meaningful jump in rates coming forward? Nope, we think it's all hype it's the anticipation of the rate increase. The federal reserve has given us every indication that a rate hype of short term rates will be gradual and so the effect on longer term rates like 30 year mortgage may not even be seen this year at all.But still it's going to be the first time that people are in a tightenting situation since 2004-2006 so they dont know what to expect. They want to short thing now and that's what is motivating a lot of these sales. Are we coining the term rate hype? Yes, it's rate hype season!
May Housing Stats:
Home sales +5.4%
Days on Market: 28
Sales Growth: +1.6%