There are some very interesting things taking place in the nation’s major real estate markets. Many areas that suffered high foreclosure rates and huge depreciation rates in home prices are experiencing genuine turnaround, with demand for housing climbing quickly.
A recent report on home inventories generated by the National Association of Realtors indicated that the number of homes for sale is the lowest it has been since 1999. This is even true in states where the housing crisis was a serious matter, such as California, Arizona, and Florida. The well-known real estate listing website Zillow noted that in Sacramento, CA, the number of property listings was down in the y-o-y analysis in January 2013 by 60 percent. Zillow also confirmed that property listings are down 23 percent for the entire United States.
Those in the housing and finance industries cite a number of factors that have reduced the inventory of available homes throughout the country, which has severely driven up the demand. Due to the Great Recession, construction of new homes virtually came to a standstill. Foreclosed upon homes and short sales were snapped up by investors and the continuing low mortgage rates were a big incentive for qualified buyers to commit to home purchases. The Mortgage Bankers Association reported in early April that “distressed sales are down and conventional sales are up.” [Read more...]