A report out this week showed that home sales across the nation have reached a five-year high, and the state of Illinois is no exception.
According to the Illinois Association of Realtors, home sales increased 14.9 percent over the previous year, with 15,268 homes sold in June 2013, up from 13,286 in June 2012.
But the rising mortgage rates are causing some to question whether this trend will continue.
Below is a roundup of recent articles about the current state of the housing market and some predictions about the future.
New home sales hit five-year high, prices soar – Reuters
“New U.S. home sales vaulted to a five-year high in June, showing no signs of slowing in the face of higher mortgage rates.”
Two Years of Illinois Home Sales Gains: Realtors’ Group – Illinois Public Media
“Sales of existing homes in Illinois were up 14.9% in June from previous year levels, and median home prices increased 9.7% —- according to the Illinois Association of Realtors.
Dr. Geoffrey Hewings, Director of the University of Illinois’ Regional Economics Applications Laboratory says he’s not ready to call the increases a trend — but he says it’s certainly an improvement from the lower home sales and prices that came with the collapse of the housing bubble.”
Why Home-Price Gains Will Slow Amid Higher Mortgage Rates -The Wall Street Journal
“Home prices moved up at a torrid pace during the first half of the year, but don’t expect them to keep pace during the second half.
The big spike in mortgage rates over the past two months has reset the housing market and figures to take a bite out of demand at a time when more sellers have listed homes for sale and when price gains have tested investors’ purchasing appetites.”
Housing Costs Severely Burden Millions Of Americans, Reaches A Record High – Progress Illinois
“The U.S. housing recovery is gaining traction due in part to an increase in multi-family housing construction and rising home prices, according to the annual State of the Nation’s Housingreport released Wednesday by the Joint Center for Housing Studies of Harvard University.”