It’s Official! National Association of Realtors Deems This a Buyer’s Market
We’ve talked at length about how many areas of the state are currently favoring buyers; therefore, seeking pre-approval on your Florida home loan is a great idea.
Now, however, is truly is official: The National Association of Realtors, in its June report, states that we’re in a buyer’s market. Get out there and purchase while prices remain low!
Why are we in a buyer’s market?
According to the report on existing home sales issued last week, there is now a 6.8 month inventory of existing homes on the market. The joint report of the Department of Commerce and the Department of Housing and Urban Development on new home sales contained similar news; the supply of newly constructed homes on the market will take 6.1 months to absorb at the current sales pace; compared to 4.3 months one year ago.
The NAR survey found that sales were down modestly in June, while home prices were still rising, albeit at a much slower pace than the status quo buyers and sellers had been seeing in recent years.
David Lereah, NAR’s chief economist said that the market is “flattening-out.”
“Over the last three months home sales have held in a narrow range, easing to a level that is near our annual projection, which tells us the market is stabilizing. At the same time, sellers have recognized that they need to be more competitive in their pricing given the rise in housing inventories,” he added.
It’s true. As a recent auction in the South Florida housing market proven, sellers are not being realistic when it comes to pricing property at the moment.
Review of median home prices
The median existing home price for all housing types - single family, town homes, and co-ops - was $231,000 in June, a 0.9 percent increase over June 2005’s median price of $229,000.
NAR President Thomas M. Stevens stated that “people who were discouraged by the bidding wars that were so common over the last few years are finding more choices now. Relative to the five-year housing boom, this year is a buyer’s market in much of the country with plentiful supply, along with interest rates which remain historically favorable, so it’s a good time to buy a home.”
Single family home sales were down 0.9 percent to an annual rate of 5.81 million from May to June. That was 8.2 percent lower than one year earlier and the median price, $231,000, was identical to that for all housing types.
What does this all mean? The time is right for those seeing a house. Sit down, crunch some numbers, talk with our experts and determine which Florida home loan is best for your needs.
