For 13 years, the inventory of available housing units for occupancy hits its lowest. This was affirmed by the National Association of Realtors as published in a Forbes article by Morgan Brennan. According to the reports of NAR, 1.74 million homes are currently on the market, but considering the fast pace of how homes are sold, the supply is expected to last for about four months only.
During those times, it is expected that the demand will be higher because the supply will be depleted or at least be nearly depleted. Many individuals have become more concerned about their future or perhaps more aware of their family's welfare. As a result, home sales are pushed up to higher levels than the previous years.
In a relevant article published by Jann Swanson via Mortgage News Daily, the Nar through its chief economist Lawrence Yun confirmed that buyer traffic is in a steady rise. It is 40% above than it was a year ago causing a higher demand in supply in many types of residences.
Sales of existing homes registered a 0.4% increase in January form a month earlier to a seasonally adjusted yearly rate of 4.92 million. Existing homes include those of single-family homes, condos, coops and townhomes. Based on the types of residences that are being of high demand these days, we can get a glimpse that majority of the homebuyers still belong to the average earners. However, luxury home buyers should never be casted out in the statistics as this particular buyer's segment is also shaking up to be a large contributor in previous home sales.
In the same NAR report, median national price of homes was pegged at $173,600 in January of this year. It was 12.3% higher a year ago marking its 11th consecutive month of year-over-year price gains.
If the same sales pace is to continue, developers will be compelled to develop empty spaces into zones that are not only fit for residential purposes. Today, many of the residences are incorporated into mixed-use developments where residential neighborhoods bring diversity to lifestyle centers and commercial zones. This is also one of the contributing reasons why there is a steady rise in the sales of townhomes and condos.
14% of January sales were from foreclosures while 9% represented the short sales. Foreclosures were removed from the market by selling at an average 20% discounted price as short sales were on 12% discounted price.
Despite the high taxes being paid by the workforce, a high 30% of homebuyers were from the segment of first time home buyers. This is a strong indication that most individuals from the work force highly prioritize shelter as opposite to what is being projected by some groups.
Based on the presented facts, it is very clear that the real estate industry is into a great rebound. Higher prices and greater housing demands are telltale signs that it is getting stronger as months pass by. Let us just hope that it is a continued feat for developers, agents, and brokers to enjoy while helping many Americans fulfill their dreams of owning a house!
Desare Kohn-Laski is a proud and experienced Florida realtor who is knowledgeable and familiar of the East Coast Florida real estate market. Stop the chase for your dream house with her professional assistance. For more information, hop on to http://www.browardhomes.org.