Monday, February 25, 2013


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
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