The National Association of Realtors (NAR) just released their Existing Home Sales Report revealing that distressed property sales accounted for 6 percent of sales in October. This is down from 9 percent in 2014 and the lowest figure since NAR began tracking distressed sales in October 2008.
Below is a graph that shows just how far the market has come since January 2012 when distressed sales accounted for 35 percent of all sales.
Existing Home Sales Up Year-Over-Year
Mortgage interest rates remained below 4 percent in October prompting existing home sales to stay at a healthy annual pace of 5.36 million. Year-over-year sales were up 3.9 percent.
Inventory of homes for sale remain below the six-month supply that is necessary for a normal market, as they fell 2.3 percent to a 4.8-months supply. The shortage in inventory has contributed to the median home price rising an additional 5.8 percent to $219,600.
NAR’s Chief Economist, Lawrence Yun had this to say about the lack of inventory:
“New and existing-home supply has struggled to improve so far this fall, leading to few choices for buyers and no easement of the ongoing affordability concerns still prevalent in some markets.”
There is good news though, as Yun went on to say:
“As long as solid job creation continues, a gradual easing of credit standards even with moderately higher mortgage rates should support steady demand and sales continuing to rise above a year ago.”
If you are debating putting your home on the market this year, now may be the time. Buyers are still out there looking for their dream home. Meet with a local real estate professional who can help you determine your best plan. For more information, please contact The Olear Team today!