July has exhibited some enduring characteristics that are worth pointing out. If for nothing else, last month was not in line with previous Julys, but rather more indicative of an exciting summer fix and flip market. Let’s take a look at some of last month’s numbers that real estate investors should be excited about this summer:
- Consumer confidence was the highest it has been in July since 2007
- Last month saw the highest nominal home prices for July in history
- Last month may post the lowest July unemployment rate since 2007
- Mortgage rates have never been lower in July than they were last month
Those looking to partake in the summer fix and flip market should view these indicators as a sign that the sellers market may be tempering. While far from over, the sellers market doesn’t have quite as much of a strangle-hold over the housing sector, and those looking to buy may want to act sooner rather than later. So whether you are looking to flip a home this summer, or buy your first primary residence, consider the happenings of last month to be a good sign of what may come.
It is worth noting that what is currently driving demand may be the secrete to a successful summer fix and flip market. Let’s take a look at what we know so far.
For all intents and purposes, 2015 was the year in which the recovery finally gained the traction it so desperately needed. Nearly a decade since the onset of the Great Recession, the U.S. housing sector improved by leaps and bounds, as evidenced by home sales. Last year was the best year for home sales since 2007, and for good reason; appreciation rates saw equity return to regions that hadn’t seen it in years and homeowners were finally awarded the option to sell.
That said, the first half of this year has seen the positive trends carry over. Increasing a modest five percent over last year, home sales in the first half of 2016 are progressing nicely, and July shouldn’t hold any surprises when the numbers are finally released. At the very least, industry professionals and pundits alike expect to see July’s home sales numbers continue their upwards trajectory. When the numbers are released, don’t be surprises if home sales are the highest they have been in a long time.
