September keeps home sales on pace for impressive year [Video]
Posted on Monday, October 26, 2015 at 9:30:39 AM
In September home sales recovered from a weak August to keep the market on pace for its strongest year since 2007.
The National Association of Realtors announced that existing home sales increased 4.7 percent last month to a seasonally adjusted annual rate of 5.55 million, according to the Wall Street Journal. Last month home sales reached the highest point since July, a post-recession high. The impressive year for the housing market can be attributed to several factors - low interest rates, pent up demand and strong employment figures.
"We knew that the recovery would be coming, and it's been a slow, steady process," said Lawrence Yun, chief economist for the NAR. "This year it's finally coming out."
While the pace of sales is expected to slow, and what 2016 will look like is uncertain, 2015 - with September's strong showing - remains on pace to be the housing market's best 12-month stretch of sales in eight years. The future of the market will depend on first-time buyers.
Individuals new to the housing market are expected to keep it afloat, though this all depends on affordability, which has taken a hit as inventory tightens, demand remains high and, as a result, prices continue to rise. This year is sure to be a strong one for the housing market, but what seems just as certain is how uncertain the future is.