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Home sales looking strong in 2016

Posted on Wednesday, April 20, 2016 at 2:31:21 PM

The U.S. housing market has boomed in the past few months, with major gains seen in both average values and the volume of purchases throughout 2016. Back in March, Ten-X reported that February saw a 4.4 percent increase in the average price of a house compared to the same month in 2015, hitting about $210,800. The firm also forecast March prices to increase by 4.5 percent over the February tally.

In certain states, residential real estate markets have already met or exceeded pre-recession levels of performance. This makes for a healthy homeowner landscape, especially considering the fact that American consumer credit has been improving consistently throughout the past five years. With lending terms still favorable and so many individuals looking for homes, the residential financing picture is looking sunny going into the second quarter of the year.

Beating forecasts
While many analysts were forecasting a marked increase in residential sales and values last month, it appears as though the market exceeded expectations. Bloomberg reported that the latest study from the National Association of Realtors found that closings rose by 5.1 percent between February and March, reaching a total of 5.33 million. Not surprisingly, the analysts pointed to the improved economic conditions as being a catalyst for such improvements in the market. 

"Conditions are more positive for buyers now that mortgage rates have dipped back down," Comerica Inc. Chief Economist Robert Dye told the news provider. "Jobs have been a key support. Hopefully, we are starting to pull some of the marginal buyers back into the housing market."

The source noted that a combined 460,000 jobs were added in the United States between February and March. Furthermore, Bloomberg pointed out that the sale of mid-market homes has been the true bright spot of this positive trend, with many consumers across the nation looking for houses that fall between $100,000 and $500,000. 

Implications for home buyers
Strong sales of existing homes is among the most important facets of a healthy housing market. It appears as though the landscape is looking solid through the end of this quarter and potentially even further into the year. Individuals looking to purchase a home will likely have an easier time finding residential financing options and their ideal abodes today than they would have a few years ago.