Fewer Homes For Sale Means Prices In Us Are Strengthening
News Posted On: 16 May 2012
There are fewer homes for sale in the US, and this means prices are strengthening, especially in markets where supply is short due to strong demand. At the end of March there were 2.37 million previously owned homes for sale, a decline of 22% compared to a year ago, and 41% from the peak of the market in mid-2007, according to the National Association of Realtors. In comparison home sales for the first quarter were up 5.3% compared to a year ago.
According to the NAR, the median price of existing single-family homes increased in 74 out of 146 markets in the US during the first quarter, while prices fell in 72 areas. In comparison during the fourth quarter of 2011, just 29 markets showed price gains compared to a year earlier. It's expected that as the inventory levels continue to decline, then higher listing prices will become more prevalent, and economists feel the housing inventory is now at a more normal level than before.
This should mean house prices are near or already at the bottom of the market. Property price data from Zillow and CoreLogic shows prices rose slightly in March compared to February, and Fiserv Case-Shiller is predicting property prices will stabilise this summer, and will have dropped by just 0.8% for the entire year.
This stabilisation in property prices is likely to lead to more sellers putting their homes on the market, but it is also likely to lead to increasing numbers of buyers and it's expected that home sales will be up by 5% to 10% compared to last year.
View US property for sale
Written by Les Calvert
Back to news articles for this country