While many in the nation take out payday loans in effort to repair credit following the mortgage crisis, lower prices in the West are pushing home sales up.
- Image by Getty Images via Daylife
Existing-home sales have increased nearly 18 percent over November 2007 in the western U.S., a region that includes Colorado. This statistic and the ones that follow include single-family homes, condominiums, townhouses and co-ops.
Counter intuitive?
It may be surprising that home sales are rising during an economic crisis, when payday loans are more popular than ever. Furthermore, home sales usually drop in the fall and winter and pick back up in the spring and summer.
However, home prices in the West have dropped nearly 26 percent. It’s a simple matter of supply and demand. No one was buying, and prices dropped to a level where houses are selling again.
How big is this trend?
Nationally, home sales are still down. Compared to November 2007, home sales are down 10.6 percent nationally. Prices decreased more than 13 percent nationwide, but so far that’s not enough to make homes an affordable commodity.
Sales were down 8.6 percent in October. So nationally, home sales are still in decline.
Sitting pretty in the West
Even in the West, home sales for October decreased, year-after-year. They were down 4.3 percent that month, making the jump in November even more significant.
Another surprise is that the median price for a home in the West is actually higher than the national average. Nationally the average price of a home is $181,300. In the West, it’s $242,500.
What about December?
While it’s unlikely that national home sales will increase in December, one statistic provides a glimmer of hope for the housing market. During the week that ended Dec. 12, the number of mortgage applications rose 2.9 percent. This figure is a bit tricky because it includes applications to refinance, which are climbing as interest rates drop.
Should I buy a home?
Just remember if you’re applying for payday loans or looking to repair credit, make sure you don’t sign up for something you can’t easily afford.
Down turns in the economy are often the best time to purchase a new home, a first home, or refinance. If interest is down, it behooves the wise consumer to make hay while the sun shines, so to speak.
This is the best time to buy if you can qualify for a home loan. Fortunately for people that need help repairing there credit this trend of loan rates and depreciated home prices should continue for quite sometime. Usually depending on the severity of the credit problem the repair process can take 6 months to a year. Bottom line is if you are looking to take advantage of the current market place you need to get your house in order sooner then later. For more information on how you can get your credit in order call 573-418-0932.
I agree with perky that it is or will soon be a good time to buy a property.
It has been my experience, that when you can afford a home, it is a good time to buy one.