Hot Hot Housing Market!

According to a report released today by The National Association of
Realtors, sales of existing homes came in at an annual pace of 7.33 million
homes in June, compared with the revised 7.14 million pace in May. The
forecast from www.Briefing.com who suveyed a number of Economists
was that sales would remain little changed at the 7.15 million pace in June.
The previous sales record was set in April, when sales had hit the 7.18
million pace. The second quarter therefore has seen the three strongest
sales months.

The national median existing-home price for all housing types has hit a
record of $219,000 in June. That was up 14.7% from a year earlier, the
biggest year-over-year jump since November 1980. The June price was
up 6% from the reading in May. [The median price is the point at which
half the home sell for more and half sell for less].

The average housing price, which is typically higher due to the weightage
of upper-end home sales, was $268,000, again another record. This is up
9.4% from a year ago and up 4% from May.

Tight supply of homes and low mortgage rate are two driving forces
behind this hot housing market. The group's data shows that there is a 4.3
month supply of homes on the market, the same as in May, and low by
historical standards. The average supply in 2004 was also 4.3 months,
and it was higher in 2002 and 2003.

The average 30-year mortgage rate in June was 5.58%, according to
Freddie Mac. That's the lowest average since March 2004, and could spur
more sales that will be reported in July and August reports. Rates moved
up in July but they are still below the April and May averages that fed into
June's strong report.

Is it wise to buy a home now? If you have a long term view (10 years or
more), probably yes. If you think you'll move in 3-5 years, probably not!