4 Reasons Why 2013 Had the Highest Home Sales Since 2006

Is the housing crisis really over?

Why was 2013 such a great year for home sales?

2013 turned out to be a good year if you were hoping to sell your home. We haven’t seen numbers like this since the housing boom of 2006. There are a few reasons why the housing market made a rebound last year.

If you were wondering what some of those numbers were, the following will give us the answers:

  • 5 million previously owned homes were sold last year.
  • 9.2% more previously owned homes were sold in 2013 than in 2012.
  • 20% more previously owned homes were sold in 2013 than in 2011.

According to CNN Money,

The median price of a home sold in the year was $197,100, up 11.4% from the previous year.”

With so much good news, it may have you wondering why. Why was last year such a great year for the housing market? Today, we would like to share with you 4 reasons why 2013 had the highest home sales since 2006.

  1. Employment Is Up
    In November of last year, the U.S economy had already added 2.1 million jobs, according to CNN Money. Now, the recession isn’t quite over and the unemployment numbers are still too high. However, with more Americans being employed, more Americans felt comfortable enough to purchase a home.
     
  2. Mortgage Rates
    Towards the end of the year, we saw mortgage rates rise from the all time low that it had been at. This rise enticed many Americans to take the plunge, purchase their home, and take advantage of the low rates before they disappeared altogether.
     
  3. Home Prices Are Up
    One of the biggest obstacles that many Americans have faced over the last few years was that they owed more on their home than the home was worth. This is called being underwater with your mortgage.

    All over the country people are seeing the value of their home rise.

    In our article, Michigan Home Prices Are on the Rise, we shared the great news that home prices were making a comeback, and in fact many in the Detroit area had risen to where they were at in 2008.

    Not only that, but from October 2012 and October 2013 median home sale prices rose 42%.
     
  4. Foreclosure Crisis Coming To An End
    In Michigan, we saw foreclosures rates drop 37%. That was the lowest we have seen since December of 2005. In our article, Foreclosure Crisis Comes to an End, we covered if the crisis had really come to an end and why.

All of the above reasons make up the best year in home sales since 2006. Be encouraged, especially if you are looking to sell or purchase a home.

Why do you think 2013 was such a great year? Do you have a reason we didn’t list?