The Numbers Don't Lie

January 26, 2012

According to a report by the National Association of Realtors, December marked the third consecutive month of rising existing home sales. This upward trend put the housing industry ahead of last year's numbers. The chief economist for the NAR, Lawrence Yun said, "The pattern of home sales in recent months demonstrates a market in recovery," he said. "Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market." On a 12-month basis, from December of 2010 to December of 2011 existing home sales were higher by 3.6%. Also in December, housing inventory dropped 9.2 percent to 2.38 million existing homes on the market. This is the lowest level since March of 2005 when existing homes on the market reached 2.30 million. Yun Said, "The inventory supply suggests many markets will see prices stabilize or grow moderately in the near future." As existing home sales rose over the past 3 months, so too did homebuilders confidence which has reached the highest level since June 2007, according to Bloomberg News this rise in builder confidence can be attributed to stronger sales and improved buyer traffic. The confidence measure among builders, which increased for the past 4 months in a row, reflect an improvement in all four regions of the United States. What do all these statistics mean for buyers? This means many markets will start to see stabilization in pricing and will begin to see some growth. Now is the time to buy a new home. With less inventory, low interest rates, and a strong indicator that many markets are beginning to stabilize, this would be the time to hop of the fence and give serious thought to following through on that new home purchase you've been dreaming of. Source: National Association of Realtors. Image source: ©
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