Average mortgage amount increases

In a report released yesterday by Capital Economics analysts reported that the average loan amount lenders issued to borrowers in the past three months grew by $20,000, suggesting an early sign that buyer confidence is improving across the country. See Average mortgage amount increases by $20,000

Also in the report, a reported 20% drop in visible home inventory over the past 18 months. Locally, readers of this blog are well aware of the market’s shortage of inventory. [Looking back at the numbers for Reno-Sparks, I see that our inventory is down over sixty percent over the past 18 months.]

But what about loan amounts locally? Are borrower’s borrowing more? To get an idea I looked at sales since January 1st – specifically those sales that have been financed. Here’s what I found for the last three months for financed (conventional, FHA and VA) home purchases…

Month # of Sales Average Sales Price Median Sales Price
Jan 2012 292 $171,746 $150,000
Feb 2012 326 $182,148 $153,950
Mar 2012 366 $187,425 $159,900

As can be seen in the data above; number of sales, average sold price and median sold price have all increased since January 1st. If we make the assumption that down payment percentages have remained consistent, then it follows that loan amounts have been increasing as well.


About Guy Johnson

I am a licensed Nevada REALTOR® living and working in Reno, Nevada. Give me a call at 775-722-4011. My team and I will be happy to assist you with your real estate needs.
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One Response to Average mortgage amount increases

  1. Avatar tyler durden says:

    ZIRP and QE are flushing out all the cash (much not local cash).

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