Pace Of Home Sales Picks Up
According to the National Association of REALTORS®, Existing Home Sales rose 8 percent in August from the month prior, and 19 percent as compared to August 2011.A total of 5.0 million existing homes were sold last month on a seasonally-adjusted, annualized basis. This is the highest reading since March, and a signal that the housing market may not be as weak as purported.
Sales increased across all price points, and home inventory dropped.
At the current pace of sales, the nation's 3.58 million homes for sale would be sold in 8.5 month's time. That's an entire month faster than what we saw in July, and well below than 1-year average of 9.1 months.
The Existing Home Sales report contained these statistics, too :
- 29 percent of August's buyers paid cash for their home
- "Distressed homes" accounted for 31% of all sales
- Real estate investors grabbed a 22% market share, up 4 ticks from July
Jumbo Market Stays Strong
Home sales in the million-plus range gained 12 percent year-over-year, and the next price point lower -- $750,000 to $1,000,000 -- showed similarly strong gains, adding 8 percent year-over-year.
These are great results.
This year's falling mortgage rates have helped home affordability in the conforming mortgage range, but it's given new life to the luxury market. Ultra-low mortgage rates have lowered housing payments dramatically.
As one example, here's how mortgage payments have changed for someone using a $1,000,000 jumbo 5-year ARM to purchase a home :
- In September 2009, rates were 6.000%. The buyer pays $5,995 per month.
- In September 2011, rates were 3.250%. The buyer pays $4,352 per month.
Jumbo mortgage rates are cheaper than they've been in history.
Get A Jumbo Mortgage Rate Quote
It's not just the jumbo 5-year ARMs that are low these days; 7-year ARMs and 30-year fixed rates are, too. With "points" or without, you're going to like what you see.If you're buying a luxury home, don't stress on a huge downpayment. Typically, 20% down is enough to get the "best rates available". Make sure to check your options.
Click here to get a jumbo mortgage rate quote.
About the Author
Shawn Kaplan is an active, 50 state Licensed loan officer with Access National Mortgage. He specializes in large cap and Jumbo home loan financing for the affluent and high net worth markets seeking innovative solutions.
