The articles talking about the low inventory and increased sales are becoming more prevalent again and some have good information including statistics to show what is happening in different areas. This one is especially good and full of a lot of interesting information.
The Housing Market’s Latest Problem: Lack Of Inventory
The National Association of Realtors just released its pending home sales data, reporting that the number of contracts signed in May for existing homes was 13% higher than a year ago. Every region of the country reported increases. “Actual closings for existing-home sales have been notably higher since the beginning of the year and we’re on track to see a 9 to 10% improvement in total sales for 2012,” added NAR chief economist Lawrence Yun in a statement. Read More at Forbes.com
I like to see articles such as this one with a lot of good information and it helps to reinforce points I’ve been making since the beginning of this year. Here are some other points in the article that I thought were worth quoting:
NAR is reporting tight inventory levels throughout the U.S., particularly at the lowest price points where both investors and first-time home buyers have been the most active. Shortages in for-sale homes are even occurring in Florida and the entire western region of the country, particularly in the Sun Belt states hardest hit by the housing crash.
“It’s different today for a buyer being in the market,” says Rick Davidson, chief executive of Century 21 Real Estate. “They might not find that deal of the century that they may have expected to find.”
Indeed. Multiple offers have become more commonplace and bidding wars have been cropping up regularly in the most sought-after neighborhoods. Some buyers complain that they are having a hard time securing a purchase, beat out by other bidders, let alone find a bargain.
“You have pent up demand where people are actually waiting for properties to come onto the market,” explains Butler. In classic supply-demand fashion, prices are ticking up in response: listing prices are up 15.5% since last year, according to Realtor.com.
More and more buyers are coming to the realization that continuing to wait for ‘the bottom’ may be a mistake if we’ve already passed it.