Almost 14,000 Houses Sold Yesterday
One of the biggest misconceptions in today’s housing market is that homes are not selling. That is simply not true. Last month’s Existing Sales Report from the National Association of Realtors (NAR) showed that homes were selling at an “annual rate of 5.10 million”. That’s an average of 13,973 every day – 365 days a year!
And the monthly Pending Sales Report, which measures the number of houses going into contract each month, has showed increases in six of the last nine months prompting Lawrence Yun, NAR’s chief economist to say:
“Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24 percent and demonstrate the market is recovering on its own. The index means modest near-term gains in existing-home sales are likely.”
We realize that 40% of the sales are distressed properties and that 22% of buyers are investors. Yet, that still doesn’t negate the fact that homes are in fact selling… and 60% of them are NOT foreclosures or short sales.
And Yun believes this uptick will continue:
“Based on the current uptrend with very favorable affordability conditions, rising apartment rents and ongoing job creation, existing-home sales should rise around 5 to 10 percent this year.”
Bottom Line
Homes are selling. You probably will need to offer a compelling price if you put your house on the market. But if you do, it will sell.
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Greatly great articles to send to facebook.
Cecilia Klinowski
Great news to share with both your sellers and buyers!
This is what I’m telling people. I mean, yes, things are still in decline percentage-wise – but homes ARE selling, and the numbers in themselves aren’t shabby.
As long as it’s the RIGHT price it sells!!!!!
Here’s the problem. While it is true that 60% of sales are not distressed, the problem is that 90% of active inventory are not distressed. Only about 10% of the active inventory is lender owned or short sales, yet about 35-40% of what they’re putting under contract is. This makes true months of inventory numbers for non-distressed properties worse than it appears, which is already over 12 months for the entire market.
Compelling is the key word for sale and list price in this market.
Gina, AMEN! I find it easier “lately” when speaking to sellers about proper pricing. It’s taken a long time for them to get it. But most do now.
Thank you! Always wonderful to share a positive view.