26
May
11

National Association of Realtors Reports Decline of Existing Home Sales in April

NAR reported that sales if existing home sales declined in April. NAR concluded that the home market is struggling to gain traction as the economy expands as the decline of existing home purchases fell .8%.  NAR also stated that with unemployment at 9% and wages stagnant, any sustained recovery in residential real estate may take years to unfold.

Interestingly, cash purchases accounted for 31% of all transactions and distressed (short sale and REO) accounted for 37% of transactions. Nationally, housing supply is at 8.3 months of inventory, meaning that if no homes were listed for sale, it would take 8.3 months for the inventory to be absorbed by the existing buyer pool.

Some of the statistics confirm what I am experiencing in the Bay Area Market. Since November, I have tracked a decline of approximately 4.7% in home values and an increase in existing inventory from 3 months supply in November to a 5 month supply now. In my career, I have used a 6 month supply of homes as the benchmark for ‘equilibrium‘, that is, a balanced market between buyers and sellers.

Distressed properties generally make up a larger part of the active inventory than the national average. Locally, that figure can range from a low of 40% to the 65%-70% range, depending on the location and the sample size of the neighborhood or area.

These are all statistics that I use when consulting with sellers who are  making decisions on whether to sell, how to price for the existing buyer audience or making other real estate decisions. Knowing these facts about the market helps take the emotion out of the decision-making process and gives a more realistic and fact based decision on the important elements of pricing and positioning for the market.

For a more detailed look into these statistics and how they affect your future or pending real estate decisions, or for helpful tools to locate a home to purchase or get a value on your home, you can go to my website at www.deansouza.com or you can call me at 510 881 1761 or reach me be email at dsouza@deansouza.com .

Bye for now,

Dean

Advertisements

0 Responses to “National Association of Realtors Reports Decline of Existing Home Sales in April”



  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 406 other followers

May 2011
M T W T F S S
« Feb   Jul »
 1
2345678
9101112131415
16171819202122
23242526272829
3031  

Dean Souza

Advertisements

%d bloggers like this: