Homes.org Analyzes the May Existing Home Sales Reports – Low Inventory Leads to Less Sales

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We are hearing a lot about multiple bidding and quick sales in areas with tight supply, with competition between first-time buyers and cash investors, who have a significant advantage.

(PRWEB) June 24, 2012

The new Homes.org monthly home sales report examines data from the National Association of Realtors® May Existing-Home Sales report. The Homes.org analysis outlines key findings for existing home sales and forecasts what sellers and buyers are likely to see in the months to come based on the market activity in May.

The NAR May Existing Home Sales Report revealed that changes in supply and demand are creating shifts in markets across the country. Even though overall sales were down from last month real estate agents and industry experts are optimistic given the improvement in prices and increased buyer interest.

Key Findings in the May 2012 Existing Home Sales Report Include:

•         4.55 million existing home sales in May
•         1.5% less homes sold compared to April’s revised numbers of 4.62 million
•         9.6% higher than total home sales in May 2011
•         Inventory was down 0.4% ending the month at 2.49 million
•         Median existing home price increased to $182,600 for all types of homes
•         Foreclosures and short sales accounted for 25% of the sales, down from 31% in May 2011
•         34% of home buyers were first-time buyers
•         17% of home buyers were investors
•         28% were all cash sales

Compared to last month, home sales in May decreased across all regions expect the Midwest which saw a 1% increase. The Northeast experienced the largest drop in sales at 4.8%, followed by the West at 3.4% and the South at 0.6%. The Midwest region sales rose 1%. However, the median priced rose in all four regions compared to a year ago.

Top Factors Effecting Home Sales

•     Low Inventory Levels
•     Affordability    
•     Low mortgage interest rates

Though home sales were down, it was a direct correlation to the decrease in available inventory. It appears that we’re reaching a period where there are more interested buyers than there are homes for sale. Moe Veissi, NAR President and broker-owner of Veissi & Associates Inc., said "we are hearing a lot about multiple bidding and quick sales in areas with tight supply, with competition between first-time buyers and cash investors, who have a significant advantage," he said.

May statistics suggest that the real estate market is going through a period of transition in which the tables have turned on the number of buyers versus available homes. We’ll likely see higher home sales than last year but relatively modest month-over-month gains. The biggest difference this summer will probably be a significant increase in multiple offer situations and home selling at or higher than list price.

To learn more or search for new homes for sale in your area, please visit: Homes.org

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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®

Star Nine Ventures® is an Austin-based, marketing-driven venture creation company targeting a wide range of national business-to-consumer online marketplaces. Star Nine's core mission is to build businesses that provide exemplary consumer experiences and unparalleled customer service.

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