How Is The Housing Market Doing?
…to resolve this question, one could Google — Housing Market — and here is today’s answer…
Housing Market Is Heating Up, if Not Yet Bubbling – NYTimes.com
US existing home sales fall, price appreciation slows – Miami Herald.com
U.S. Housing Market Now 67% Back To Normal – Forbes
Is the Housing Market Making a Major Shift? – USA Today
What Happened To The “Good Deals”?
…you mean the foreclosures?
The number of foreclosures in today’s market is near normal, down 27% from last year, making up only 5% of today’s housing market. Of course, the previous year’s foreclosed home prices (good deals) did not include the cost of new carpeting, new roofs, appliances, light fixtures and in some instances door knobs to furnaces.
So, How Is The Local Housing Market Doing?
The following data is taken from the Regional Multiple Listing Service of Minnesota for the greater St. Cloud area.
Sales Are UP… The number of homes sold are up 7% over the first three quarters of 2012. The primary reasons are low interest rates, an economic upturn in employment and pent up consumer desire to own vs rent.
Inventory Is Down…The number of homes for sale is at a low point of…down 5% from 2012. This is partially due to the increase demand and the number of home owners waiting for prices to rebound.
Average Sales Price Is Up…The average sales price reached 157k in 2013. This is a 12% increase over 2012. With decreasing foreclosures and short sales and an increase in new construction prices and an increase in buyer demand…we will see prices rebound.
Days On Market Is Down…For all the reasons above, days on market, is decreasing. Currently the average days on market is down 13% to 156 days.
The King And Queen Of All Housing Data…
The King: Absorption Rate Rules! National economists have determined a balanced market (neither buyer nor seller have a negotiations advantage) when there are six months of available inventory. In today’s local market we are at six months or six available homes per buyer.
The Queen: Housing Affordability Index…what is in your wallet? The average home buyer on the street has 215% of the household income necessary to qualify for the average-priced home under today’s interests rates. This high number suggest great affordability and a greater time to buy.
The Bottom Line…
For Buyers…the current low rates and the extreme affordability index…make today a great time to purchase a home.
For Sellers…the low rates, low inventory and pent-up consumer desire to own a home make today a great time to sell.
SEE All HOMES FOR SALE: www.I-94Homes.com