Rising New Home Sales Point to an Improving Housing Market
After a long, bleak period during which the US housing market hit rock bottom, a ray of light is beginning to show at the dark tunnel that the sector has been in. Latest housing market analysis reports indicate there are strong signs of revival.
More sales
Home sales are improving. According to the National Association of Realtors®, the prices of single-family home prices are becoming stable in 51 percent of the major cities in America. The last housing market analysis quarterly report issued by the association also indicates that there are improved sales numbers as well as declining inventory. The association reported that there was a rise in the median of existing single-family home prices in more than half of the metropolitan statistical areas.
The median describes a situation where half of the homes available sold for more while the other half sold for less. At the end of the first quarter of 2012, the national median existing single-family home price stood at $158,100. This was 0.4 percent less than $158,700 of the first 2011 quarter.
The sale of existing homes, both condo and single-family went up by 4.7 percent to stand at an annual rate of 4.57million after seasonal adjustment in the first quarter. This was after the downwardly revised figure of 4.37 million in the fourth quarter of 2011. It was also 5.3 percent more than the 4.34 million mark of the first 2011 quarter when sales went up. This is the greatest first quarter sales seen from 2007.
Higher home value
Recent reports indicate that the value of US homes has risen by a significant 2.1 percent from the first quarter to the second 2012 quarter to stand at $149,300. This is an annual rise of 0.2 percent from June 2011. This is also the first rise in home value that has been seen since 2007 since the sector started to slide.
Another significant statistic that has been noted in recent housing market analysis reports is that for the fourth consecutive month, national home value went up by 0.7 percent. This is the highest rate of appreciation that has been recorded since the fourth quarter of 2005.
Experts believe that the market is beginning to spring back after hitting the lowest levels ever in February 2012. One of them, Zillow, indicated in their June 2012 Zillow Home Value Forecast that national home value is expected to go up by 1.1percent in the coming year between June 2012 and June 2013.
Non-price metrics
According to housing market analysis by Fiserv Case-Shiller, sales indexes also point to price stabilization. Their reports indicate that even going by other metrics other than price such as the volume of home sales, spending on home improvement projects and construction of multi-family units, all indications are that the housing sector is on swing on the upswing after hitting rock bottom.
Set to climb higher
The current spike of sales is the highest that has been seen since 2007. Should the market hold the momentum, it is expected that total home sales around the country will rise by between 7 and 10 percent. The highest rates of appreciation of home value are expected in metropolitan areas.
The time is now
As the housing market continues to become more and more brisk as housing marketing analysis reports are showing, home value and prices will keep rising as demand also rises. For those looking to invest in the real estate market as home owners or investors, the time to make a move is definitely now. With every passing moment, a house continues to become more and more costly.
(creaitve commons photo credit)