The second quarter of 2015 has shown great promise in terms of real estate sales in the United States, placing first time buyers playing a significant role in the increase. It is factually 9.2% higher compared to the previous year.
Forbes online Contributor Stephen Pope stated in his essay that the 5% increase for the month of May was taken from the US Census Bureau sales of homes that were pre owned. New homes Sales on the other hand has increased from 534,000 for the month of April to 546,000 for the month of May, showing an increase of 2.25%. Despite of this boom in real estate property sales "Zillow", who is an online real-estate tracker, observed a contrast where there richer areas were experiencing only 12% of their homes having their debts higher than the actual value while the areas where it is poorest shows 54%.
Allison Halliday of Realty Biz News has shared that based on National Association of REALTORS the 5.1% increase has been its peak for almost 6 years now acknowledging first time buyers as well, pointing out actual completed sales of single-family homes, condominiums, co-ops and townhouses. She adds that the Northeast has shown larger disparity compared to the rest of the major regions.
Based on percentage as to the participation of first-time buyers, Lucia Matukani of Reuters showed they took 32% of the total closed transactions. Contributing factors may be due to the easing of credit conditions via mortgage companies which is controlled by the government namely, Fannie Mae and Freddie Mac.
Housing data stocks has shown evident increase pointing out the demand of such. The major homebuilder D.R. Horton rose to 1.5% and a slight increase of 0.63% by HGX. This would mean that D.R. Horton including Lennar Corp, also a real estate company, has to step up if they expect to meet the demand in the near future. Based on May's rate of increase, there should be a sufficient supply of houses in the market for about 5.1 months.
Overall, this would mean an increase in the prices of houses which will also mean good news for homeowners who want to sell but do not have sufficient equity.
