Wednesday, June 25, 2014
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.