The housing market was on a tear in June, as home sales hit their highest pace in eight years and the national median sales price marched to a record $236,400.
The strong sales activity is due to the improving economy and was also likely driven by the recent rise in mortgage rates, with buyers hurrying to make deals in order to avoid the prospect of higher borrowing costs in the future, according to Lawrence Yun, chief economist for the National Association of REALTORS®.
On the other hand, the continuing rise in prices, a result of the tight supply of residential properties for sale, is leading to a decline in the affordability of homes—and means local officials should take steps to promote new construction, Yun says.
The acceleration of home prices is the top story in The Voice for Real Estate for the week of July 27. The news video, which comes out every two weeks, also covers the announcement by Richard Cordray, director of the Consumer Financial Protection Bureau, that his agency will not be looking to penalize lenders who make mistakes as the government’s new closing go into effect later this year.
In addition, the program focuses on the importance of real estate professionals urging Congress to support the Innovation Act, which would reform the patent system, and looks at why NAR favors legislation that would help protect property owners from wildfires.
By REALTOR® Magazine Daily News