Wednesday, May 22, 2019
By Platinum Realty Florida
Take Advantage of Historically Low Interest Rates and Healthy Appreciation

The FHFA (Federal Housing Finance Agency) released their House Price Index, which measures home price appreciation on single-family homes with conforming loan amounts, showing that home prices rose 0.3% in February.

 

The year over year appreciation rate dropped from 5.6% to 4.9%. Although the pace of appreciation has been moderating, 4.9% appreciation is very strong and meaningful for wealth creation and more sustainable. This is more in line with what we have been seeing from other reports and our forecast for the year.

 

New Home Sales, which measures signed contracts on new homes, were up in 4.5% in March, which was stronger than the 3% drop expected. Sales up 3% year over year and are at their highest level in almost a year and a half.

 

First Time Homebuyers represented 33% of sales, up from 32%. Cash Transactions accounted for 21%, down from 23% and Investors made up 18%, up from 16%.

 

Lawrence Yun, NAR’s chief economist, anticipated fluctuation in the numbers for March. “It is not surprising to see a retreat after a powerful surge in sales in the prior month. Still, current sales activity is underperforming in relation to the strength in the jobs market. The impact of lower mortgage rates has not yet been fully realized.”

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