Tag Archive for: home sales

A 20% Increase in Home Sales During May

There is absolutely no doubt that the housing market is recovering steadily without any pit stops along the way. As statistics are released each month by multiple agencies, the news is always the same: records are being set, year-over-year increases in new home sales, existing home sales, and all home sales are happening almost every quarter, 12-932 Beauregard Pkwy. Custom Pavers in Courtyardand the built-up housing inventory of the Recession is in its 103rd consecutive month of year-over-year decreases since the market dropped out in October, 2008.  That last statistic is pretty mind boggling when you think about how bad builders and home sellers alike were suffering, holding onto properties and paying the taxes, mortgages, and expenses on these properties – waiting for the market to turn.

Well, the good news is – it has! May, 2017 is showing the strongest sales numbers for any May in the 9-year history of the RE/MAX National Housing Report – a 20.6%, year-over-year increase of total home sales compared to 2016.  Two other records were also set during the month of May: the average time a home for sale was on the market was only 51 days, and the housing inventory supply shrank to a 4-932 Beauregard Pkwy. Batten Board and Wooden Beamshockingly low time period of only a 2.6 month’s supply.

What isn’t news and is still being watched by many economists is the average home price increased to $232,500 – the second highest price in the month of May in the history of the report behind the median sales price of $236,062 in August, 2008, right before the Recession. Home prices and rising interest rates have been a concern as home buyers are trying to get loan approvals to being the home buying process.

“In May, we saw an uptick of both loan applications and home sales, which is encouraging in terms of more people getting into the market for homes,” said Adam Contos, RE/MAX Co-CEO. “We don’t expect that the Federal Reserve’s announcement on Wednesday to raise interest rates a quarter of a point will greatly affect the market’s momentum. But housing demand only intensifies the tug-of-war with tight inventories driving prices up.”

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It’s a Seller’s Market

Home pricing, fast home sales, bidding wars, and tighter inventory are the national trends for people selling their homes in 85% of the major markets around the United States. As the housing recovery has had a steady and substantial upward trajectory since its crash in 2008, home pricing has been both a boon and a warning for 1-50 Natchez Trace Exterior Fronteconomists worried about too much, too fast causing a double-dip Recession scenario.  For now, for the first time in a long time, sellers have the advantage with a reported $44,000 increase in equity in a home sale during the 1st quarter of 2017.

This means that price gains from a purchase increased by $44,000, according to Attom Data Solutions’ report. There hasn’t been a sales gain this high since 2007.

“I am guessing we will see it get even better before it gets worse,” said Daren Blomquist, senior vice president at Attom. “If you are considering moving this spring, it could be a really good time to sell.”

This type of return on investment real estate sales results has caused bidding wars in competitive markets that have very low housing inventories. The time on the market for a home for sale has been a factor with an average of 45 days Large Rec room that can be converted to many different living spaces.for “normal” markets and an average of just 21 days for fast-moving markets. Some homeowners thinking about selling are holding on a bit longer to see if this home pricing increase trend continues before they are willing to sell – getting the most bang for their buck. Also, “warnings” in the industry are indicating that if they do sell their home and sell it quickly, they may be stranded looking for a place to buy as the inventory is so tight. So, it can be blessing and a curse – a two-edged sword.

According to the report, the median home price for the 1st quarter of 2017 was $225,000, which is a shocking 13% increase from just a year ago. For those homeowners who went “underwater” with their mortgages during the Recession, the increase in home pricing / home equity has been a huge help, but some markets such as Las Vegas and Miami are still struggling with their housing recovery. Las Vegas is still showing a 26% decline in home pricing and Miami is at 22%.

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