Prices of new homes nationall are increasing sharply this year. The U.S. Department of Commerce revealed the median price nationwide for new homes was $290,000 in March, which is an 11.2 percent jump between February and March of 2014.
Housing Expert Don Frommeyer, CRMS, President of NAMB (The Association of Mortgage Professionals), attributes the rising prices to the low supply. “Housing inventory remains at a historically low number. Slowly we’re seeing more houses on the market, but as of now it’s still a low supply compared to the past,” says Frommeyer. “With fewer houses on the market, sellers can keep their prices high as the demand is still there.”
In addition, more lenders are easing restrictions in an attempt to encourage buyers even though prices remain high. “The buying landscape is changing and lenders are starting to accept lower credit scores with reduced down-payment requirements.
It’s a way to encourage house and mortgage sales and help continue the housing recovery,” continues Frommeyer. Housing Prices Hit New High in March Supply Decreases, Prices Rise The U.S. Department of Commerce revealed the median price for new homes was $290,000 in March, which is an 11.2 percent jump between February and March of 2014.
Housing Expert Don Frommeyer, CRMS, President of NAMB (The Association of Mortgage Professionals), attributes the rising prices to the low supply. “Housing inventory remains at a historically low number. Slowly we’re seeing more houses on the market, but as of now it’s still a low supply compared to the past,” says Frommeyer. “With fewer houses on the market, sellers can keep their prices high as the demand is still there.”
In addition, more lenders are easing restrictions in an attempt to encourage buyers even though prices remain high. “The buying landscape is changing and lenders are starting to accept lower credit scores with reduced down-payment requirements. It’s a way to encourage house and mortgage sales and help continue the housing recovery,” continues Frommeyer.
Recent housing numbers have revealed that while sales numbers have not been high, prices of new homes are increasing sharply. The U.S. Department of Commerce revealed the median price for new homes was $290,000 in March, which is an 11.2 percent jump between February and March of 2014. Housing Expert Don Frommeyer, CRMS, President of NAMB (The Association of Mortgage Professionals), attributes the rising prices to the low supply. “Housing inventory remains at a historically low number. Slowly we’re seeing more houses on the market, but as of now it’s still a low supply compared to the past,” says Frommeyer. “With fewer houses on the market, sellers can keep their prices high as the demand is still there.”
In addition, more lenders are easing restrictions in an attempt to encourage buyers even though prices remain high. “The buying landscape is changing and lenders are starting to accept lower credit scores with reduced down-payment requirements. It’s a way to encourage house and mortgage sales and help continue the housing recovery,” continues Frommeyer.
