US Home Sales Shoot up to 10-year High - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

US Home Sales Shoot up to 10-year High

Posted: Updated:
(Photo: AP) (Photo: AP)

WASHINGTON (AP)- Americans purchased homes in March at the fastest pace in over a decade, a strong start to the traditional spring buying season.
    
Sales of existing homes climbed 4.4 percent last month to a seasonally adjusted annual rate of 5.71 million, the National Association of Realtors said Friday. This was the fastest sales rate since February 2007.
    
The U.S. housing market faces something of a split personality: A stable economy has intensified demand from would-be buyers, but the number of properties listed for sale has been steadily fading. The result of this trend is prices rising faster than incomes, homes staying on the market for fewer days and a limit on just how much home sales can grow. It's a situation that rewards would-be buyers who can act quickly and decisively.
    
The inventory shortage largely reflects the legacy of a housing bubble that began to burst a decade ago.
    
Foreclosed properties were snapped up by investors who turned the homes into income-generating rentals, depriving the market of supply. And many owners who escaped the downturn unharmed chose to refinance their mortgages at extremely low rates, possibly making them hesitant to move to a new house that could increase their monthly costs.
    
This mismatch between supply and demand can be seen in two simple figures tracked by the Realtors.
    
Sales have risen 5.9 percent over the past year, but the inventory of homes for sale has fallen 6.6 percent to 1.83 million properties. This means there are essentially more buyers chasing fewer properties.
    
The consequences can be seen in home values and days on the market. The median sales price in March climbed 6.8 percent over the past year to $236,400, significantly outpacing wage growth. And it took an average of 34 days to complete a sale, compared to 47 days a year ago.
    
In March, sales rose in the Northeast, Midwest and South but declined in the West.
    
Demand might increase further as mortgage rates began to dip in recent weeks.
    
Home loan costs had been climbing after President Donald Trump won the November election, under the belief that the government would engage in forms of stimulus such as tax cuts and greater deficits that could cause higher levels of inflation. But major initiatives such as tax reform have stalled in recent weeks as the administration has yet to put forward a proposal, prompting more doubts as to when and whether any stimulus might arrive.
    
Mortgage buyer Freddie Mac said Thursday that the average interest rate on 30-year fixed-rate home loans declined to 3.97 percent this week from 4.08 percent last week. The average is now at its lowest level in five months.

  • Delmarvawide NewsDelmarvawide NewsMore>>

  • Dover Officials Work to Identify Wastewater Pump Station Failure

    Dover Officials Work to Identify Wastewater Pump Station Failure

    Feb 19, 2018 11:42 PM2018-02-20 04:42:00 GMT
    Monday, February 19 2018 11:42 PM EST2018-02-20 04:42:48 GMT
    DOVER, Del. - All six pumps at the Dover Wastewater Pump Station 7 failed on Monday afternoon, according to city officials. Public Affairs and Emergency Services Coordinator Kay Sass says it's highly unusual that all six pumps would fail, but the city isMore
    All six pumps at the Dover Wastewater Pump Station 7 failed on Monday afternoon, according to city officials. More
  • A Foul Problem: Dover Wastewater Pump Station Shuts Down

    Dover Wastewater Pump Station Shuts Down

    Feb 19, 2018 10:35 PM2018-02-20 03:35:00 GMT
    Monday, February 19 2018 10:47 PM EST2018-02-20 03:47:38 GMT
    DOVER, Del. --- A wastewater pump station near U.S. Route 13 in Dover suddenly shut down on Monday afternoon, prompting round-the-clock work to bring the station back to working order. Dover spokeswoman Kay Sass said the Pump Station 7, located near the HMore
    DOVER, Del. --- A wastewater pump station near U.S. Route 13 in Dover suddenly shut down on Monday afternoon, prompting round-the-clock work to bring the station back to working order. Dover spokeswoman Kay Sass said the Pump Station 7, located near the HMore
  • Delaware Police Ask For Public's Help to Find a Wanted Sex Offender

    Delaware Police Ask For Public's Help to Find a Wanted Sex Offender

    Feb 19, 2018 9:25 PM2018-02-20 02:25:00 GMT
    Monday, February 19 2018 9:44 PM EST2018-02-20 02:44:10 GMT
    The Delaware State Police Sex Offender Apprehension and Registration Unit is currently asking for the public's help to find a wanted sex offender who failed to re-register.More
    The Delaware State Police Sex Offender Apprehension and Registration Unit is currently asking for the public's help to find a wanted sex offender who failed to re-register.More
  • Most Popular VideosMost Popular VideosMore>>

  • Police Search for Vandal Suspects Who Killed Fish

    Police Search for Vandal Suspects Who Killed Fish

    Police are investigating vandalism at Kitty's Flower Shop in Salisbury that occurred around 7:30 Thursday night. The store's outdoor pond was destroyed and several of the fish in that pond were killed.

    More

    Police are investigating vandalism at Kitty's Flower Shop in Salisbury that occurred around 7:30 Thursday night. The store's outdoor pond was destroyed and several of the fish in that pond were killed.

    More
  • Crisfield Reacts to Possible New Chesapeake Bridge Crossing

    Crisfield Reacts to Possible New Chesapeake Bridge Crossing

    A new crossing maybe on the horizon for one small town. Nearly thirty miles across the Chesapeake Bay lies Maryland's western shore. The state is spending $5 million on a study to find out where to put a third span across the bay.

    One option has that new bridge connecting to Crisfield, Maryland. It's something that younger people, like Markie Harrison, says may make her want to stay in town.

    More

    A new crossing maybe on the horizon for one small town. Nearly thirty miles across the Chesapeake Bay lies Maryland's western shore. The state is spending $5 million on a study to find out where to put a third span across the bay.

    One option has that new bridge connecting to Crisfield, Maryland. It's something that younger people, like Markie Harrison, says may make her want to stay in town.

    More
  • City of Dover Works to Figure Out Why All Six Wastewater Pumps Failed

    City of Dover Works to Figure Out Why All Six Wastewater Pumps Failed

    All six wastewater pumps for the City of Dover failed sometime in the afternoon. Now, crews are working through the night to implement temporary solutions. The cause of the failures is still unknown. The failures do not affect drinking water.

    More

    All six wastewater pumps for the City of Dover failed sometime in the afternoon. Now, crews are working through the night to implement temporary solutions. The cause of the failures is still unknown. The failures do not affect drinking water.

    More
Powered by Frankly

All content © Copyright 2000 - 2018 WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices