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The national housing market continues to
recover as a result of existing-home sales improving with low inventory
supply pushing home prices upward. National Association of Realtors
(NAR) Chief Economist Lawrence Yun states, “Momentum continues to build
in the housing market from growing jobs and a bursting out of household
formation. With lower rental vacancy rates and rising rents, combined
with historically favorable affordability conditions, more people are
buying homes.”
There are good signs that 2013 will be a year of recovery for the housing market. 2012 is the first year since 2005 where the year ended in positive territory, and if 2013 is anything like 2006, it could mean we are headed for a strong rebound. There is an urgency to buy now as home prices continue to increase and mortgage rates are at historic lows.
Home Sales
In Millions
Home sales this month increased 14.5% from last year and 5.9% this month to a seasonally adjusted rate of 5.04 million units, the highest level since November 2009. Distressed homes (which include short sales and foreclosures that traditionally sell for 15%–20% less on average compared to nondistressed homes) accounted for 22% of November sales, down from 24% the previous month and 29% last year. NAR Chief Economist Lawrence Yun states, “the market of distressed property sales will fall into the teens next year based on a diminishing number of seriously delinquent mortgages.” This is a promising sign, but the amount of distressed properties is still high by historic standards.
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Home Price
In Thousands
The current median home price rose this month to $180,600, an increase of 2.1% from the previous month and up 10.1% from last year. November marks the ninth consecutive month of year-over-year price gains, which last occurred from September 2005 to May 2006.
Inventory- Month's Supply
In Months
Housing inventory fell 3.8% this month to 2.03 million existing homes for sale, representing a 4.8-month supply, the lowest housing supply since September 2005. An inventory supply of 6 months indicates a balanced market. More than 6 months points to a buyer’s market and less points to a seller’s market. The current supply is further evidence that the market clearly favors sellers on average across the country.
Source: National Association of Realtors
Interest Rates
This month mortgage rates are at or around
3.37%, still hovering near record lows. In terms of the monthly payment
on a 30-year fixed rate mortgage, a 1% increase in interest rate is the
equivalent to a 10% increase in price. Low rates and a rebounding market
have put buyers in a sweet spot, fueling urgency to buy now.
Are you in the market to buy a home, sell a home, or make a real estate investment? Call The Puffer Team today, we'll be happy to help you with all of your real estate needs, 828-771-2300, www.homefinderasheville.com.
