September 2012 Market Update Sales of existing homes have continued to improve. In July, one-third of all homes sold were on the market for less than a month. In fact, every region except the West, where inventory was low, saw a rise in monthly sales. NAR Chief Economist Lawrence Yun believes that affordability conditions are very good for the housing market. “Mortgage interest rates have been at record lows this year, while rents have been rising at faster rates. Combined, these factors are helping to unleash a pent-up demand,” Yun said. “However, the market is constrained by unnecessarily tight lending standards and shrinking inventory supplies, so housing could easily be much stronger without these abnormal frictions.” With mortgage rates beginning to rise, coupled with strong affordability, now is one of the best times in history to buy.
Home Sales in millionsWhile home sales grew 2.3% from last month to 4.47 million units, year-over-year sales increased 10.4%. According to the National Association of Realtors, existing home sales rose in July with the national median sales price reaching five consecutive months of year-over-year growth. Distressed homes (which include short sales and foreclosures that traditionally sell for 15%–20% less on average compared to nondistressed homes) allotted for 24% of July sales, which is down from 25% in June, but is 29% below year-ago sales. Even with declines in distressed home levels, sales of these properties are still expected to be higher than the historic average.
Home Price in thousandsRising inventory supply has placed downward pressure on home prices. The median home price fell 1% from last month, but rose 9.4% compared to a year earlier to $187,300. This marks the fifth consecutive month of year-over-year price gains, which has not been seen since January to May 2006. July’s gains are the most robust since January of 2006 when median home prices rose 10.2% from 2005. Inventory- Month's Supply in monthsHousing inventory increased 1.3% in July to 2.4 million homes available for sale, a 6.4-month supply. This marks the eighth consecutive month of inventory at a 6-month supply, the threshold for a balanced market, giving both buyers and sellers an equal advantage. As supply continues to hold steady at more balanced levels, so does the idea that the housing market is moving closer to a full-scale recovery. Source: National Association of RealtorsInterest Rates Mortgage rates at or around 3.66% are up slightly from 3.53%, possibly indicating rates have finally hit bottom. These are some of the lowest rates on record since 1971, increasing the urgency to buy now.
This Month's Video Topics For Home Owners, Buyers & Sellers When looking to sell, your home’s appearance can be the difference between it sitting on the market or selling quickly. Updating your property can be one of the easiest and most cost-effective ways of adding value to your home. Here are some tips to get your house looking great:
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Retired - Gaithersburg, MD
Thanks for sharing the market update.
I hope you are enjoying the first weekend of the fall season.
Sep 22, 2012 09:34 AM
Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource
Carla, that's an impressive statistic that one third of homes sold in less than thirty days...I have little doubt that those homes were priced right an in the best condition.
Sep 23, 2012 01:32 PM
Keller Williams Preferred Realty - Raleigh, NC
NC Real Estate Transition & Relocation 919-602-848
Hi roy - Thank you! Our fall started off with summer temperatures but, it quickly turning. The best part is we have lots of beautiful sunshine!
Nick, you're correct. Home that sell quickly are priced right to begin with and they usually get the best prices.
Sep 23, 2012 09:56 PM
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