U.S. existing-home sales rise to highest in more than a year

This article is from https://www.crainscleveland.com/ and it shows that home sales are still brisk and people are buying. Lets look at some of the major parts of this article. 

"The first back-to-back sales gain since 2017 suggests housing is on the rebound after residential investment dragged down economic growth for six straight quarters. Higher wages and lower mortgage rates are bolstering demand and affordability, though the supply of homes remains tight, pushing up prices faster than pay and inflation. At the same time, weakening business investment and slower hiring could limit any gains, as trade uncertainty weighs on the economy."

I heard a report this weekend that wages have went up for the middle income over $6000 a year. As the story mentions that the interest rates have went down and people are looking to purchase real estate again. This also helps the rental market out in the higher rent districts. Prices and equity in homes go up which is good for many fronts. 

"The data may also assuage concerns among some economy watchers that a recession is coming in the next year. A report Wednesday showed new home construction surged in August to the fastest pace of the expansion as homebuilders started more apartment projects and single-family houses. Permits, which are often viewed as a proxy for future construction, rose to a 12-year high."

The economy has been stagnate for over a decade. Slow economic growth was the norm from 2006-2016, and wages where only going up $1000 a year. The construction of mid priced homes from 2006-2016 where almost non existent. Remember the gates around the sub-divisions and all building literally stopped. No one was building.

You also could not get financing in 2006-2016, no one was lending. You basically could not get money for much of anything. Real Estate investors started looking for different financing that did not have banks and Mortgage companies involved. Real Estate buyers where basically paying cash for homes. 

Fast forward until today and all fronts are lending, Banks, Mortgage, Cash, Private and many other ways to finance a home. 

"Sales advanced in three of four regions, with the Northeast up 7.6% from the prior month, the South rising 0.9% and the Midwest increasing 3.1%. Purchases in the West fell 3.4%"

The Northeast which consist of Cleveland metro is where sales advanced the most. The affordability and the high standard of living makes the Northeast a very desirable place to purchase homes. 

We purchase many homes for our clients and understand each area we purchase in. Need Real Estate especially investment real estate? Call me I'm Brett 216-703-5740 Icon Agent for EXP Realty 2 years and running.  

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