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Monday, October 29, 2012

Existing Home Sales: Strongest Quarter Since 2010

Existing Home Sales UP! 

The National Association of Realtor's (NAR's) Existing Home Sales report tallies home sales of previously-occupied homes and not since the tax-credit fueled Spring of 2010 have so many "used homes" been sold.

In addition, the trade association reports that just 2.32 million homes remain for sale nationwide -- the sparsest supply since March 2005. At the current sales pace, the entire U.S. stock of homes for sale would sell in just 5.9 months.

Housing market analysts believe that a 6.0-month supply represents a market in balance between buyers and sellers; neither group benefiting from much negotiation leverage. With supply below 6.0 months, then, leverage tends to shift toward sellers.

When home supply falls, more buyers compete for fewer homes, a situation which leads to "multiple offers" and competitive bidding. Homes sell more quickly, at higher prices.

It's tough to get "great deals" (Click here for my blog post How to win a bidding war) in a seller's market -- just ask a buyer who's won a bidding war. (Click here for my blog post Tips for buyer's in a changing market)