High demand for the Summer housing market

22News explains why prices are higher, and interests could soon follow.

NORTHAMPTON, Mass. (WWLP)- The housing market has improved since last Summer.  The median price for a single family home was about $237,000 this past June. That’s a six percent increase over last year.

Starter homes are in high demand.  The peak season for home selling is usually April, May and June because people want to be established before the school year begins.

Realtors say from paper to putting the key in the front door, younger generations are becoming more involved with the housing market increasing demand.

The average 30-year-fixed mortgage is now around 4.10% , meaning average monthly payments of about $960. That’s about $30-dollars more than what people are paying if they bought a house in the spring.

“Ranches that used to sell for $165,000 are now going close or over $200,000.” Dayne Tracy, of the Murphy’s Realtors told 22News the competition for quality new homes is creating some “bidding wars” with buyers making offers “OVER” the asking price.  “The average house is probably on the market in Northampton probably 75 days or so 75 to 90.”

The National Association of Realtors predicts Mortgage rates will rise in the next couple months.  The Federal Reserve is expected to start gradually raising the federal fund rates this fall, which are expected to affect mortgage rates.

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