Home Sales Continue to Improve

According to information from the U.S. Department of Housing and Urban Development, home sales on new and existing properties are continuing to move upward. May numbers should positive marks overall.

Good Numbers Everywhere

The housing market posted good numbers for the month of May. There were fewer foreclosures, while more homeowners moved into positive equity. This serves to help new and existing homes sales to continue to improve.

Some of the big numbers include the following:

·         Over 5.8 million homeowners now have positive equity, beginning from 2012 to the first quarter 2014

·         Foreclosures were down 10% in May from April and down 32% from May 2013

·         New home sales were up 6.4%

·         Sales of existing homes were up 1.3% from March

The programs that were put in place to help distressed homeowners are showing results now as the market begins to look more "normal." These numbers are expected to improve as we move into the heavy buying season of the summer months.

Homeowners are still receiving help through the programs to avoid foreclosures. In fact, over 2.0 million actions have occurred within the Making Home Affordable Program.

Low Sales

While the sales numbers are up, they are still below what they were last year at the same time. Much of this is due to the low inventory available as well as strict lending standards that prevent some first-time homebuyers from qualifying. There is also less affordability for homes now than there was a year ago. While this is expected to change, any reflections will be slow to be seen due to the fact that lenders want to avoid falling in the same trap. While they will loosen their lending standards to some degree, it won't happen overnight. And buyers shouldn't expect to see the same products available that they saw before the crisis.

The improvement in sales as well as the rate of growth is positive for the housing industry. With slow, steady improvements, the market is more likely to sustain the changes. Now is both a good time to buy and sell. Give me a call if you are looking to buy a home or if you want to sell yours and find something new.