National housing trends continue their multi month consecutive growth and buyers get yet another break. For the last few months as the national housing recovery has really taken hold, growing numbers of new transactions have naturally decreased the inventory of homes for sale, which is good for sellers, kind of.
The fundamental principles of supply and demand indicate that lower supply and maintained demand increase prices. In reality, however, too much demand in supply shortage markets results in full price offers (good for sellers) and multiple offers (good for sellers). Ok, we can all agree on that. Put yourself in buyers' shoes for a moment. Some buyers are bidding in competition on a property only to have it sell to someone else, leaving a feeling of defeat, or more often, creating timing challenges as their current leases either need to end or be re-extended. In other cases, buyers (who may also be sellers with a home to sell) are not satisfied with inventory choices and therefore do not buy and do not sell. Again, not healthy for the market in the big picture.
Nonetheless, activity is up significantly and help is on the way. For the first time this year, year over year inventory for April in local markets and nationally was up, meaning more homes are available for buyers to pick from. Nationally, the number of homes listed in April 2013 was up 11.99% compared to April of 2012, fueled by the positive news being reported across the country. A lot people would agree that it's cool to sell homes again. Price gains are being observed as well. Across the country, the median sold price of existing homes has increased by 4.6% as the number of sold homes increased by 9.7% In some of the hardest hit markets in the country such as Phoenix, Las Vegas, and parts of Florida, average prices are up 20% or more.
It's a great time for homeowners who purchased homes prior to 2008 to explore their options and leverage their equity in today's market.
For additional information, please visit my Market Stats page HERE