4 Big Drivers of
the Housing Market Recovery
DAILY REAL ESTATE NEWS | THURSDAY, MAY
23, 2013
The Wall Street Journal
highlighted four primary reasons why the housing market recovery is strong.
They are:
·
Sales have made big leaps from year-over-year levels. Existing-home sales are up 9.7 percent
compared to one year ago. Sales are at an annual rate of 4.97 million, which is
the highest level since November 2009, according to NAR. Despite constrained
inventories and recent price gains, home sales continue to post
increases.
·
Non-distressed home sales are increasing. Home buyers are showing high demand for
non-distressed homes. In April, about 18 percent of sales were in foreclosure
or a short sale — down from 28 percent year-over-year.
·
Inventories have increased. In April, the number of homes for sale rose
11.9 percent from March. The limited supply — mixed with rising buyer demand —
has helped home prices to rise around 10 percent year-over-year. “Rising
inventory should ultimately slow some of the price rally while boosting sales
volumes, helping to restore equilibrium in the housing market,” The Wall Street
Journal reports.
·
Homes are selling a lot quicker. About half of all homes that were sold in
April were on the market for 46 days, down from 83 days one year earlier,
according to NAR data.
Source: “Four Reasons Why Home Sales Are
Looking Healthy,” The Wall Street Journal (May 22, 2013)
Scott Larson
Reverse Mortgage
Specialist
(408) 315-2503 direct
(408) 872-4002 fax
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