Many buyers are staying in the market after experiencing a contract failure and making an offer on another property, showing their determination to take advantage of the favorable conditions
(PRWEB) March 21, 2012
The latest Homes.org real estate health report analyzes data found in the NAR February Existing-Home Sales report. The Homes.org report highlights the key findings and examines what buyers and sellers are most likely to experience in the months to come based on the market performance in February.
The February Existing Home Sales Report, like other recent reports, show 2012 is continuing the progress seen at the end of last year. Although things appear to be stabilizing there are still factors that are holding real estate markets back from fully recovering.
Key Findings in the February 2012 Existing Home Sales Report Include:
- 4.59 million existing home sales in February
- 0.9% decrease in home sales compared to last month after totals were revised upward
- 8.8% higher than total home sales in February 2011
- Unsold inventory was up 4.3% from January, but 19.3% lower than a year ago
- Median existing home price rose 0.3% to $156,600 for all types of homes
- Foreclosures and short sales accounted for 34% of the sales, down from 39% in February 2011
- 32% of home buyers were first-time buyers
- 23% of home buyers were investors
- 33% were all cash sales
In February there were mixed results in the four regions across the U.S., with the South and Midwest seeing increases and the West and Northeast seeing declines compared to last month. The Midwest experienced the largest increase in sales at 1%, followed by the South at 0.6%. Home sales in the East fell 3.3% and the West dropped 3.2%.
Top Factors for the Improvement in Home Sales
- More balanced supply and demand
- Home prices stabilizing
- Sustained job growth
- Rise in rental prices
- Record low mortgage interest rates
Conditions That Are Holding the Market Back
While the overall market is experiencing important improvements in median price and inventory levels, there are still a few things that are suppressing the real estate industry from making a more robust recovery. These two factors are canceled contracts and foreclosures and short sales that depreciate prices.
Cancelled contracts, due largely to appraisal failures and declined mortgage applications, have been an ongoing problem since mortgage lending was overhauled. However, at 31% cancelled contracts are way up from a year ago when they were just 9%.
NAR Chief Economist explains that while it's not ideal, this isn't all bad news. "Many buyers are staying in the market after experiencing a contract failure and making an offer on another property, showing their determination to take advantage of the favorable conditions, but the cancellations are contributing to an uneven sales pattern."
Though there has been a drop in the number of foreclosures and short sales, they are still suppressing home prices. While this may seem like a good thing to buyers, it isn't for the overall market. Real estate agents and experts do suggest that there was over correction in home pricing and things are beginning to stabilize which means that prices are likely to keep inching upward.
To learn more about what can cause a real estate contract to fall through or to search for homes for sale in your area, please visit: Homes.org
Homes.org is a fast growing real estate search portal that offers users much more than MLS listings. Homes.org gives users access to a rich collection of resources, including but not limited to, real estate listings, home owner finance tools, home service tools. Homes.org brings buyers, sellers and renters important information about the current markets and intelligent tools by partnering with real estate professionals from around the country. Homes.org is a subsidiary of Star Nine Ventures, Inc. headquartered in Austin, TX.
About Star Nine Ventures®
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