|
A misconception in today’s housing market is that homes are not selling.
However, according to the latest survey by the National Association of Realtors (NAR), existing home sales (including single-family and condo) rose 8.3% to an adjusted annual rate of 5.14 million. Which averages out to be approximately 14,082 homes sold every day – 365 days a year! Lawrence Yun, NAR chief economist, acknowledges, however, that home prices are all over the map. The national median existing single-family home price was $158,700 in the first quarter, down 4.6 percent from $166,400 in the first quarter of 2010. The median is where half sold for more and half sold for less. Distressed homes, typically sold at a discount of about 20 percent, accounted for 39 percent of first quarter sales, up from 36 percent a year earlier.
To clarify, Yun said lower priced homes have seen the best sales performance. “The biggest sales increase has been in the lower price ranges, which are popular with investors and cash buyers,” he said. “The preponderance of sales activity at the lower end is bringing down the median price, so what we’re seeing is the result of a change in the composition of home sales.”
Investors accounted for 21 percent of first quarter transactions, up from 18 percent a year ago, while first-time buyers purchased 32 percent of homes, down from 42 percent in the first quarter of 2010 when a tax credit was in place. Repeat buyers accounted for a 47 percent market share in the first quarter, up from 40 percent a year earlier.
“The rising sales trend in nearly all states is a part of the healing process to clear off inventory. Sales need to rise before prices can firm up,” Yun added.
So the bottom line is...homes are selling. You will probably need to offer a compelling price if you put your house on the market, but if you do, it will sell. Information originally reported from NAR
|
