The Spring home selling season is off to a very good start. I feel the rest of the season is going to be materially better than a year ago. So the economist are saying it looks like this year’s going to be a lot better than last year and the numbers are proving that out. The existing home sales report from NAR shows that it slides off a little bit but it shot up in February and March. The spring selling season actually started a little bit early this year and it’s really cascading upward. Looking at the January, February and March numbers there’s a very nice growth each one of those months.
It’s not just the existing home sales, that excite me. What I can see is houses are selling in every single price category. Obviously, the 0 to 100,000 price category had a lot of distressed properties in it over the years. And those distressed properties are drying up. There are less foreclosures, less short sales. So that number is still low, but in every other pricing category starting at $100,000 it shows a very nice increase in sales over last year. So what I’m seeing is in every region in the country at every price point – sales are increasing. That’s a nice, healthy market. And if we take even a deeper look at it we can see on a month by month basis both existing home sales and new home sales, that each month it’s doing a little bit better.
People are out buying houses!
Now all this great news is leading to what? Houses selling quickly and on a national map and in many parts of the country houses are selling quicker than 45 days. Now with all of that, the number of houses selling and the excitement in the market, the fact that houses are selling quick – that’s all good news, no doubt. However, there is a challenge that’s being created by all this demand and that’s it’s cutting into supply pretty dramatically. Taking a look at the inventory level numbers year over year, I can see that for the first time in four months it’s actually over last year. That’s a good thing. The tide has turned now and more listings have been accumulated compared to the year before – or have a stronger listing inventory than the year before. But, taking a look at it a little bit more closely, even though that number’s a little bit better it’s still way below a normal six month inventory from normal market.
There is so much demand out there, the supply still needs to be built. And thoughit’s be tter than last month, it’s needs to continue to get better every single month. That inventory number needs to be at least up to 5.5 especially with the amount of foot traffic that’s out there right now. People are still looking to buy and if we don’t get a balance, we’re going to see rising prices.
Now, some might argue that prices rising really helps and in a way it does. But remember that if we have rising prices and interest rates do start to pick up too – now we’re in a situation, where more and more buyers might be forced back up on the fence.
Bottom line is, it’s still a sellers market. You don’t want to get caught up in the wait and see game. Wait to late and you might see the interest rates go up and the buyers deciding to hold off.
You can reach Gena at 765-210-5582 or by email email@example.com
Posted on June 3, 2015 at 11:16 am by Gena Martin Realtor