What’s Happening in Real Estate?
If you ask someone what the real estate market is like they will probably repeat what they heard on the news. No harm in that, but that tends to create a false idea of true real estate trends. So what’s the real deal?
The National Association of Realtors® recently sent out a report which reflects last month’s (September) data – here they are…
1. Home Prices: The median price nationally for an existing home was nearly $200,000, an increase of 11.7% from last year. Home prices have had 10 consecutive months of double-digit year-over-year increase.
2. Home sales: Sales of existing single-family homes dropped 1.5%. Not to worry, sales remain nearly 11% above last year’s numbers. What about condos and co-ops (Co-ops, for all you NYC residents)? Condo and co-op sales decreased to 4.7%, but they are nearly 9% above last year’s levels.
3. Distressed homes: This is one of my favorite topics because many investors want to find a “steal of a deal.” Foreclosures and short sales are an excellent way to purchase discounted homes, but inventory in this division has lacked. Distressed homes (foreclosures and short sales) accounted for 14% of September sales. Compared to August, that’s up 12%, however, last year, distressed home sales made up 24% of the market. “Lower levels in the share of distressed sales account for some of the growth in median prices,” NAR notes. In September, foreclosures were sold at an average discount of 16 percent below market value; short sales were discounted an average of 12 percent.”
4. Inventory: Housing inventory held steady with a 5-month supply.
5. Days on the market: What does it matter if a home is on the market for 5 days or 60 days, right? Wrong. If there is a home on the market for X amount of days, there’s always a good reason. The median time on the market for all homes was 50 days – Up from 43 days in August, but down from 70 days a year ago. Why do you think there’s an increase of days on market for homes (feel free to share your thoughts)?
Long story short folks, real estate is always a safe bet even if the market fluctuates. There were some decreases in home sales in the month of September, but overall, we are in a better position than last year. Want to receive a FREE home price evaluation? Email me to firstname.lastname@example.org and we can talk numbers and see what your home is worth!