The Real Estate market is heating up! Inventory is on the rise.
May 2014 was a spectacular month for the real estate market
throughout the nation. If you don’t feel like the market is recovering, here
are some facts for you to consider.
1.
Total
existing home sales, including completed transactions such as single-family
homes, townhomes, and condominiums, grew 4.9%
to an annual rate of 4.89 million in May 2014. This gain is the highest
increase since August 2011. Higher sales volume is a great sign for the market
as buyers are being more confident. According to National Association of
Realtors (NAR) chief economist, Lawrence Yun, “home buyers are benefiting from
slower price growth due to the much needed, rising inventory levels. Moreover,
sales were helped by the improving job market and the temporary but slight
decline in mortgage rates.”
2. Total housing inventory in May increased
by 2.2% and reached a total number of 2.28 million existing home available for
sale. The number of homes represents a 5.6 month supply at the current sales
pace. The unsold inventory of 2.15 million existing homes also rose by 6% in
comparison to last year. Growing inventory is crucial for each housing market
and builders nation-wide are very important players in the recovery of our
economy.
3. Median existing-home price experienced a 5.1% growth in
comparison to May 2013. The average price of a property of any kind for the
past month was $213,400. “Rising inventory bodes well for slower price growth
and greater affordability. New home construction is still needed to keep prices
and housing supply healthy in the long run,” Lawrence Yun added. The
combination of a healthy increase in housing prices and a long-lasting
inventory, will fuel the recovery process for the upcoming months and years.
4. Distressed homes – foreclosures and
short sales – accounted for 11% of May sales which is a 7% decrease from May
2013. 8% were foreclosures and 3% were short sales. The average discount rate
for foreclosures was 18% below the market value and 11% for short sales. Fewer
distressed homes are a great indicator of the recovery as we can see more
families refinancing their loans and keeping their homes instead of being
forced to sell them.
5. Low mortgage rates are very encouraging
for buyers of any kind. Current rates for a 30-year, conventional, fixed-rate
mortgage dropped to 4.19% last month and recorded the lowest rate since June
2013 (4.07%). NAR President Steve
Brown, said, “the temporary pause in rising interest rates and more homes
for sale is good news – especially for first-time home buyers – who likely have
a better chance in upcoming months to make a competitive offer that’s in return
accepted by the seller.”
Here at SI Real Estate, we diligently follow the newest real
estate trends so we can offer the best possible customer service to our valued
clients. Understanding the behavior of the market and being able to work with
an experienced real estate professional can sometimes make the difference
between getting the perfect home or being outbid by someone else. With over 40
years of experience, SI Real Estate would be honored to represent you in a real
estate transaction of any kind. Feel free to give us a call at 813.631.5144,
email us at info@SIRealEstateInvestments.com,
visit our website www.SIRealEstateInvestments.com
or follow us and like us on one of our social media platforms.
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