Existing Home Inventory Drops to 13 Year Low:

What kind of housing market does the following scenario sound like? Home Prices are up 12.3% from 12 months ago, the inventory of available homes for sale are down 25.3% from a year ago and the number of units sold are up.  Sound like a great housing market to be in for a seller, right?  Well that is exactly the market that we are in right now.

The National Association of Realtors said on Thursday that existing home sales rose 0.4 percent last month to a seasonally adjusted annual rate of 4.92 million units. That was the second highest rate of sales since November 2009, when a federal tax credit for home buyers was due to expire.

Inventories were down 25.3 percent from January 2012.  At the current pace of sales, inventories would be exhausted in 4.2 months, the lowest rate since April 2005.

The low inventories are also helping pushing prices higher. Nationwide, the median price for a home resale was $173,600 in January, up 12.3 percent from a year earlier.

With this positive housing market and interest rates that are still well below normal levels, the Spring housing market looks to be a strong one.

Consumer Sentiment Rises and Delinquencies Drop:

Consumer sentiment rebounded solidly early in February after a disappointing showing the previous two months, according to a survey released Friday.

The monthly Thomson Reuters/University of Michigan consumer sentiment index rose to 76.3, up from 73.8 in January. The readings in December and January were weighed down by Americans’ concerns about the potential drag from the so-called "fiscal cliff", which federal lawmakers averted with a last-minute deal.

The consumer sentiment figure was an indication that the economic recovery is intact, though it’s below the readings in the low 80s late last year.  Everyone knows that in the housing market, it is not so much about interest rates or housing prices but instead its about  how potential home buyers feel about the economy.  Strong sentiment about the economy and their job security has always lead to strong housing demand.

In a separate report, The number of homeowners behind on their mortgages has now fallen for four straight quarters to the lowest rate in four years.   At the end of last year, the delinquency rate took its deepest dive since things began improving in 2010, falling 14 percent from a year ago, according to a new report from Transunion. Thirty-seven states and the District of Columbia saw improvements.

This is another strong sign for housing.  With delinquencies continuing to fall, the number of distressed homes that hit the market is greatly reduced and these homeowners are getting back on track with their credit scores which will lead to more qualified buyers hitting the the market this year.

Press Release - Keller Williams Realty Now #1 Real Estate Company by agent count!

Press Release - Keller Williams Realty Now #1 Real Estate Company by agent count!

In State of the Union Speech, Obama Eyes Housing

In State of the Union Speech, Obama Eyes Housing

Tax Reform, Fixing Mortgage Rules High on 2013 Obama Agenda

Tax Reform, Fixing Mortgage Rules High on 2013 Obama Agenda

Home Price Index Gains 5.5%: 

The S&P/Case-Shiller 20-city composite posted that home prices were 5.5% higher than during the same period in the prior year, for the strongest year-over-year growth since August 2006, with increases in 19 of 20 cities.

Housing is clearly recovering, with positive trends for new- and existing-home sales. However, prices remain 30% below a bubble peak in 2006, according to Case-Shiller data.  That means that there is still an excellent opportunity to select your next home while home prices still have room to move upward.