By most accounts, the first half of 2013 was a keeper.
Although July saw a slight dip in housing sales, analysts see this as just a small bump in the road, with consumer confidence remaining high.
The first part of 2013 was a banner year for both housing sales and consumer confidence. Buyer traffic in July may have dropped, but that was likely due to the increase in interest rates. With a surge in the spring due to impending interest rate hikes, the housing market has quieted down, as those on the fence are hanging back and re-evaluating their options. But that surely doesn’t spell doom for a housing market that has rallied since December.
A new Fannie Mae survey, along with a 14 percent jump in mortgage applications in July, further highlight the fact that today’s housing market is strong, resilient, and poised for success as the year draws to a close.
The Fannie Mae survey found that, although 62 percent of buyers believe mortgage rates will increase over the next year, 74 percent say that now is a good time to buy a home.
Another survey from PulteGroup found that 43 percent of move-up buyers say they are planning to buy a new home within the next 5 years, and 76 percent say they think they will sell their current home and move up to a larger home.
One of the concerns continuing to persist is the sheer lack of homes for sale. With a lack of homes for sale, current homes for sale tend to increase in price to meet the demand, leaving some buyers out of the loop. Further, higher interest rates may make some homes less affordable, leaving some buyers unable to purchase a home at this time.
Even given the few bumps in the road as of late, most consumers remain very confident about the housing market and what will happen during the second half of 2013. With rates still hovering near historic lows, most buyers see a rise in interest rates as a mere convenience, not a deal breaker for moving forward to purchase a Sugar Land homePosted by Richard Soto on