Where Are Home Sales Headed?

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To understand where home sales are headed for the second half of 2013, it’s important to show the immense growth home sales have seen in the last quarter. In our first graph you can see the spike of growth in April to May, where pending home sales levels are far above the historically healthy level of 100. More sellers are entering the market as their negative equity has turned to positive equity, giving inventory levels a boost in the process. In our second graph, one can see the contrast to the past few years. While each spring season brought a spike in pending home sales, levels have not been this healthy since before the housing bust.

More importantly, the National Association of REALTORS® is projecting continued growth for the next six quarters, taking us into December 2014. There will be tremendous opportunity as home sales continue to grow — appraisals and home assessments will more easily keep up with the huge spike in rising prices and sellers will feel comfortable coming to market. With even more positive equity, distressed inventory shrinks further, meaning median prices will continue to climb. If you are thinking about selling, know that it is a traditional sellers market, with many homes seeing multiple offers and lasting only a few days on the market. If you’re a buyer ­— act fast! Homes are selling at rates the market hasn’t seen since 2006.

Return to the full Quarterly Newsletter here.

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Categories: Home Buying, Home Selling, Real Estate News

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