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Existing home sales rise to highest levels in a decade

On behalf of Lang Law Office posted in Residential Real Estate on Wednesday, November 23, 2016.

The sale of existing homes in the United States is now at its highest level since February 2007, according to a new report by Reuters. This news is good for the economy and the housing market as a whole, both of which appear to be in better shape than before the Great Recession. In Minnesota, the spike in selling is a nice lead-in to the winter months when demand tends to drop.

However, the nuances of the market create pros and cons for buyers and sellers alike. After all, a better market does not eliminate the tedious process of buying and selling. The rise in sales is due to “unrealized pent-up demand” and “confidence” in the market, according to the report. Coincidentally, the rise in demand last month coincides with a rise in mortgage rates this month.

The median home price rose six percent from last year to $232,000. The increase in median home price and mortgage rates could deter first-time home buyers, but higher home prices mean more equity for owners. First time home buyers are often disadvantaged not by the market, but by navigating the home buying process.

Significant changes in the mortgage loan and real estate industry since the Great Recession have offered new protections for home buyers. If you need help navigating a complex legal issue like buying and selling real estate, you should rely on a trusted, local attorney.