Home resales rose 4 percent last month, according to the March Existing Home Sales report. A total of 5.1 million homes were sold on an annualized, seasonally-adjusted basis.
Long-Term Trend : Outlook Strong
The strong results re-establish the national, long-term trend toward rising home resales. March marked the 6th month out of eight in which sales volume has increased and sales are up 32 percent from July 2010 lows. Home supply has resumed its downward trajectory, too. At the current pace of sales, the entire home resale inventory would be depleted in 8.4 months. This is 0.1 months faster as compared to February, and a full month faster than the 12-month average.
40% Of Home Resales Are Distressed Properties
The March Existing Home Sales report also included a breakdown by buyer-type.
- First-time buyers bought 33% of homes, down from 34% in February
- Repeat buyers bought 45% of homes, down from 47% in February
- Investors bought 22% of homes, up from 19% in February
- 35 percent of buyers paid in cash.
And, perhaps most noteworthy, according to the National Association of REALTORS®,
- 40 percent of March home resales were "distressed properties". Distressed homes include foreclosures, short sales, and REO and typically sell at discounts "in the vicinity" of 20 percent.
Supply-And-Demand Dictates : Home Prices Will Rise
Home prices are based on Supply and Demand. So, with home supplies dropping, and demand for homes rising, we can expect home values to increase later this year.
Play the trends to your advantage. Call me at 513-443-2020, or click here to send me an email with some notes on your situation. I'll get back with you on rate quote, and a pre-approval letter, if you need one.
Today, homes are cheap and mortgage rates are low. This may not be true later this year. The best "deals" may be what you buy now.
About the Author
Shawn Kaplan is an active, multi-state Licensed loan officer with Access National Mortgage. Email Shawn at firstname.lastname@example.org or call 615-426-3182.
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