Are home resales rebounding?
According to the National Association of REALTORS®, Existing Home Sales rose 8 percent in August from the month prior, and 19 percent as compared to August of last year.
“Existing homes” are homes that are previously owned; ones that cannot be considered new construction.
A total of 5.0 million existing homes were sold last month on a seasonally-adjusted, annualized basis. This is slightly better than the 12-month home resale average, a statistic partially powered by “distressed sales”. Distressed homes — homes in various stages of foreclosures or sold via short sale — accounted for 31 percent of all home resales in August.
At the current rate of sales, the national home resale inventory would be depleted in 8.5 months. This pace is a full month faster as compared to July, and the lowest home supply reading since March 2011.
Other noteworthy facts from the August Existing Home Sales report :
- There are currently 3.58 million existing homes for sale nationwide
- 29 percent of home buyers paid cash in August
- Real estate investors bought 22% of homes in August, up from 18% in July
Home prices throughout Chicago are based on Supply and Demand and, at least right now, it appears the supply is dropping. Furthermore, with mortgage rates at all-time lows, it’s reasonable to expect demand to pick up. These two conditions should lead home prices higher.
If you’re shopping for a home right now, recognize the trends and work them to your advantage. It may be “cheapest” to buy now.
