Existing Home Sales Jump; Home Supplies Falling

Are home resales rebounding? Just trending?

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 the New York City area 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. Contact your local Realtor.

2009 was a great year to buy a home. 2011 is a great time to buy a home. Buy a home now and lock in a mortgage rate at 4% and you will never be disappointed. You will not say to yourself  " I should of waited".

This is the year, when you look back, you will say YES.

Till next time.

The New York real Estate Nurse