While home prices continue to go up, the
increase has been more moderate in 2014 than what was seen in the last half of
2013. However, because of tight inventory, prices are continuing to rise in
certain areas at an unhealthy rate. This is according to a report that was
released by the National Association of Realtors.
Rising Prices
While sellers may be excited about home
prices rising, it is much better for the economy if the growth is slow and
steady. The median price rose 8.6 percent in the first quarter from a year ago
for single-family homes. That increase is less than the 10.1 percent seen in
the fourth quarter of 2013.
The change is good news for analysts
watching the market. A more normal level of price increases is needed to
preserve housing affordability, especially for first-time buyers that make up a
large portion of the market. However, more new construction is needed to
increase inventory and maintain the housing market. An increase in new housing
will help alleviate issues with inventory.
Dropping Inventory
Existing home sales fell in the first
quarter by 6.6 percent from the previous year. The supply of inventory is at
five months with 1.99 million homes, which is higher than the previous year.
Things may change as more sellers list their
homes. Fannie Mae released a survey saying that 40% of Americans feel that
selling now is a good idea. Larger cities like Sacramento have been
replenishing inventory. Other metro areas are also seeing an improved selection
of homes on the market. This is good news for those selling their homes as well
as those who have had negative equity in their homes.
The change in numbers is good for buyers
and sellers alike. While growth is a good thing, it is only beneficial when it
can be sustained. As more statistics move towards realistic numbers, buyers and
sellers can have hope for the housing market in the coming months.
If you have decided that now is a good time
for you to buy, give me a call. I can help you find the right home in the area
of your choice. Contact me today to see what is available in your desired
location and price range.
No comments:
Post a Comment