Is the Housing Recovery Balancing?

Aug 28, 2013 by

This has been a tremendous year for the real estate market.  Throughout the nation home values are on the rise, the percentage of distressed properties on the market has decreased, and interest rates are low.  The market has been in a slow and steady state of a recovery.  In the past it appeared as though home prices would not stop climbing, but for the first time this year, we see home prices unchanged from June 2013 in 38 cities.  This is good news for home buyers.  Will the trend continue?  It’s too soon to say.  Mortgage rates are slowly beginning to climb, and inventory is becoming low in many areas. If it were to stay unchanged, however, we could expect a cushion against rising interest rates and home prices.

What does this mean for sellers?  It means that now is the time to take advantage of the market!  In some areas of the US homes have begun to drop in value, while other places they are holding strong.  Placing your home on the market now means taking advantage of the increases we’ve experienced over the last year.  Waiting may not mean more profit.

In 38 cities across the US, the average home list price per square foot was $181 per square foot in both the months June and July.  On a year over year basis, in 36 of the 38 cities, we see a 14.9 percent increase.

In 32 of the 38 cities tracked, inventories dropped by an average of 16.2 percent on a year over year basis.  The large shrinkage in supply of homes was experienced in Detroit, with a fall of 45 percent.  Other cities, which experienced a drop in inventory included Nashville, Chicago, Austin, Dallas and Houston, among others.  However, on a month over month basis, inventories were up by over 4 percent.

What can we expect for the remainder of the year?  We’ll keep you posted!

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