Dive Brief:
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Low interest rates and easier-to-qualify-for mortgage loans have gotten the 2015 housing market off to “an early, roaring start,” according to Redfin’s chief economist, Nela Richardson.
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Even in snowy and cold areas, open houses are “flooded” with house hunters, and Redfin’s free homebuying classes have attracted a record number of participants, Richardson said. She noted that the activity could indicate high buyer demand throughout 2015.
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Despite the high demand, which Richardson said is “giving us flashbacks to 2013, another year marked by high buyer demand,” the increase in home prices slowed to 7.6% last month, lower than during January 2013 or 2012.
Dive Insight:
Richardson noted that although every market “has its own housing persona,” U.S. housing overall is seeing four trends early in the year that could lead to healthy sales: high buyer demand, more inventory at year’s end than during any December since 2008, lower mortgage insurance premiums and down payments, and “rock-bottom” interest rates.