Galloway and Collens, PLLC
248-397-5507
248-397-5507

Existing home sales increased last month

Experts say that the increase in existing home sales last month is yet another sign that the housing market is stabilizing and will soon improve. Purchases of existing homes increased by 3.4 percent in April.

Industry analysts say that improvements in the job market and historically low interest rates on mortgages have combined to help put home ownership back within the reach of many Americans who have been unable to afford it during the recession. Overall confidence about long term employment and the eventual increase in home prices may also be contributing to the rise in home sales.

Another good sign in the market is that foreclosure rates have decreased. Foreclosures are now at a five-year low point. Some lenders have changed their practices for foreclosures as the priority shifts to keeping people in their homes for longer. Analysts had been predicting a rise in foreclosure rates as several mortgage companies resolved regulatory issues and lawsuits around their foreclosure practices.

Another factor in the improvement is the increase in the median price of homes over the last year. Last April, the median home price was $161,100. This year, it has increased to $177,400, which experts say is a significant development.

There are also fewer distressed properties on the market, as a result of the lower foreclosure rate. This means that the transactions are simpler for both buyers and sellers, and the existing home are likely in good condition. The numbers improved for every region in the country, including the Midwest. The biggest improvement in existing home sale rates was in the Northeast, where they saw a 5 percent gain.

Source: Bloomberg, "Sales of U.S. Existing Homes Increase as Market Stabilizes," Shobhana Chandra, May 22, 2012.

No Comments

Leave a comment
Comment Information
  • dbusiness - 2016 Top Lawyers
  • dbusiness - Top Lawyers
  • Lead Counsel Rated Attorney
  • Senior & Caregiver
  • American Appartment Owners Association - Member since 2015
  • Same Address
  • ICLE Contributor
Email Us For A Response

Contact Our Metro Detroit Attorneys

Our law firm is ready to help. Contact the real estate and estate planning attorneys at Galloway and Collens, PLLC, by calling 248-397-5507.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

26075 Woodward Avenue Suite 200 Huntington Woods, MI 48070-1341 Toll Free: 888-349-0309 Phone: 248-397-5507 Fax: 248-545-2520 Huntington Woods Law Office Map