Promising News For Home Sales
According to the latest statistics announced by the National Association of Realtors (NAR) the rate of pre-existing homes being sold is at the highest for the year. This comes after August’s disappointing news that the rate had dropped 1.8%.
September’s statistics show an increase of 2.4% (this correlates to an equivalent of 5.16 million homes being sold). It is important to note that although this is the highest rate for the year thus far, it is still 1.7% lower than this time last year. In September of 2013 approximately 5.26 million homes were sold.
Economists are optimistic citing a less competitive housing market with low interest rates which lead to stronger home sales.
Additionally, when looking at the sales of single family homes, the trend is similar. There was a 2.0% in September compared to August. However, this is overall lower than the rate recorded this time last year. Economists are optimistic citing a less competitive housing market with low interest rates which lead to stronger home sales.
September 2014 is also the 31st month in a row which showed an increase in median price for existing home sales. All cash sales have also increased slightly, making up a total of 24% of home purchases.
So why exactly is this trend happening? It may sound contradictory, but the actual supply of ‘distressed’ homes on the market are dropping. Why is this important? Because these ‘distressed’ or short sale homes often come in assessed fairly low. Since the assessed value can have a large impact on buyer perception it is important.
Combine these more favorable job hunting conditions and the lower interest rates results in better home sales.
Most buyers take into consideration comparable homes in their target area. Having fewer of these options can give them a more realistic look on the market. Combine these more favorable job hunting conditions and the lower interest rates results in better home sales.
Be sure to look at some of the other interesting statistics about the current housing market.
Contact us for assistance with your house selling or hunting needs.