After the strongest annual start in 6 years, the market for home resales appears to be taking a breather. Little has happened to slow rising home prices, however. Nationally, home values continue to rise. Homes For Sale Hits 11-Year Low- Redding Inventories Follow Suit. According to the National Association of REALTORS® (NAR), the number of existing homes sold slipped to 4.92 million in March 2013 — a one percent drop from the month prior. NAR categorizes residential homes of 1-4 units which are not considered new construction as existing homes and, despite the drop, the number of homes sold in March remains among the highest monthly tallies of the decade.
March also makes the fifth straight month through which annualized home sales topped 4.9 million, a streak last matched in 2007.
The number of homes for sale remains scarce, too. After more than 3 million were listed for sale in 2010, on average, there are now fewer than two million listed homes nationwide. Inventory is down 24% from last year and, anecdotally, REALTORS® in many U.S. markets talk of difficulty finding homes to meet buyer demand.
Furthermore, at the current pace at which buyers are buying, the complete U.S. stock of homes would sell out in just 4.7 months. This is considered a seller’s market because home supplies of 6.0 months or fewer historically favor sellers.
First-Time Home Buyers : 30% Of Housing Market
The National Association of REALTORS® March 2013 Existing Home Sales report uncovered some interesting data points from this year’s housing market.
In addition to showing rising home prices and a shrinking U.S. inventory, in March :
- First-time home buyers accounted for 30% of home resales
- Mortgage loans were used in 70% of home resales
- Foreclosures accounted for 13% of home resales; Short sales were 8%.
However, the NAR statistic which may interest today’s home buyers the most is linked to the speed at which today’s homes are selling. Days on Market — a measure of how long how remain for sale — plunged seventeen percent to just 62 days, on median, nationwide.
This rapid drop suggests that home buyers nationwide are quickly finding homes to purchase, then wasting little time going into contract.
Foreclosures are selling even faster.
The median Days on Market for last month’s foreclosed homes was just 46 days.
How Much Home Can You Afford?
If you plan to buy a home in 2013 or 2014, then, be aware of changing market conditions. Plan a budget and know how much home you can afford. Use today’s mortgage rates into your formulas, too, to ensure an accurate forecast. Getting a rate is fast, free, and does not require a social security number. Call- PETE AT MEGASTAR FINANCIAL IN REDDING- PH. 530-227-2476