Buyer credit has finally managed to push up existing home loan sales this March. However the bad news is that the sales are much lower as compared to last year.
5.35 million was the annualized figure of home loan sales in march as per the data released by National Association of Realtors. As per Lawrence Yun, chief Economist of NAR increase of home buyer credit has led to the rise in home buyer credit.
While March saw an increase in the sales volume the home sales number is still way below the December figure of 5.44 million. This trend has proven that while credit is the beginning point of home loan sales, this year’s credit has not been as successful as last year’s. Even in October, the month-on-month rise in home sales was also at 6.8%. Also, 630000 more homes were sold in October than in March.
At the time of renewal of credit in November it was opened for all home buyers and not limited to only new buyers which should have seen increase in home sales. Unfortunate sales have come down. The volume might pick up in april as a reponse to the credit but is expected to go slow again after that.
March also saw the median price of existing home sales being increased to $ 170,700 as against $ 164,600 in February. In spite of some good news the inventory levels are exhibiting worrisome tendencies with increases only in the last two months afte six months of decline.
