Small Increase in Home Sales Forecasted for 2014

In February 2014, the US housing market experienced its lowest sales pace since the middle of 2012 with the sales down 0.4% from the previous month. This coincided with the lowest number of mortgage applications for home purchase since 1995. The slight recovery in both markets during March is seen as a sign of optimism. Realtors are expecting the total number of home sales for 2014 to exceed those of 2013.

In 2013, the home sales in the US were 5.07 million. The forecast for 2014 is that the sales will be 5.14 million. The projected increase is not significant, but it is certainly good news for both sellers and buyers given the major slowdown in both the housing market and the mortgage market in the beginning of 2014. An increase in the total mortgage origination volume is also projected. It is expected to increase by $9 billion from its 2013 level which was $562 billion. Again this optimistic forecast comes despite the lowest origination volume for the first quarter in 14 years which accounted for $192 billion.

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Both markets have been affected negatively by the increase in the mortgage rates and the increase in property prices. The stricter rules for lending which are applied since January 2014 have restricted the access to home loans for many prospect home buyers. The bad weather in the US has also played its role. Fewer buyers choose to visit properties during the snow blizzards coinciding with historically low temperatures.

The biggest hopes of realtors and sellers are associated with the spring house buying season, which is traditionally from March to June. This is the period during which most sales are conducted. It has had a late start this year primarily due to the bad weather, but a great increase in sales is expected in April and May. Supply is projected to be higher than demand in the property market and this is also going to have a positive impact on sales through the lowering of price

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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