One of the biggest misconceptions in today’s housing market is that homes are
not selling. That is simply not true. Last month’s Existing Sales Report from the
National Association of Realtors (NAR) showed that homes were selling at
an “annual rate of 5.10 million”. That’s an average of 13,973 every day – 365
days a year!
And the monthly Pending Sales Report, which measures the number of houses
going into contract each month, has showed increases in six of the last nine
months prompting Lawrence Yun, NAR’s chief economist to say:
“Since reaching a cyclical bottom last June, pending home sales have posted an
overall gain of 24 percent and demonstrate the market is recovering on its own.
The index means modest near-term gains in existing-home sales are likely.”
We realize that 40% of the sales are distressed properties and that 22% of
buyers are investors. Yet, that still doesn’t negate the fact that homes are in fact
selling… and 60% of them are NOT foreclosures or short sales.
And Yun believes this up-tick will continue:
“Based on the current uptrend with very favorable affordability conditions, rising
apartment rents and ongoing job creation, existing-home sales should rise
around 5 to 10 percent this year.”
Homes are selling. You probably will need to offer a compelling price if you put
your house on the market. But if you do, it will sell.
Re-printed with permission from Keeping Current Matters, 3 May 2011