Numerous indicators are pointing to a national real estate recovery, according to a recent member survey conducted by the National Association of Realtors (NAR). More than 70 percent of the polled real estate agents agree that home prices have stayed constant or moved higher over the past twelve months.
Stronger demand by homebuyers is changing market dynamics. NAR members note that the average number of days a home stays on the market before selling fell by 30 percent during 2012.
Roughly one in three houses put on the market sell in just one month. Close to half of all properties are sold within two months, say NAR members.
Reduced numbers of distressed sales are helping to improve the overall health of America’s real estate markets. Foreclosed properties typically sell at more than a 20 percent discount, according to NAR.
“Short sales” tend to be priced at 14 percent below their market value, the agents add. A short sale occurs when a house is sold for less than what is owed on the mortgage.
Homebuyer demand is picking up as renters look to purchase. One reason is that residential rents are higher than they were a year ago, say 57 percent of NAR members.
Terrific home prices and great borrowing rates are working together so that more consumers can make an important purchase of a residence. However, we don’t know how long these unique conditions will be in our favor.