Home Sales to Rise in 2013 Despite Low Inventory

In some areas of the country, there is a shortage of homes available for sale. This low inventory is the main factor limiting the signing of contracts. Because of this, pending home sales has declined overall in December.

Despite that, the levels of home sales is still higher now than in the previous year when compared per month on a year-over-year basis. Contract activity has actually risen for 20 straight months and buyer interest remains strong too. The low inventory consists mainly of homes that cost less than $100,000 and are greatly located in the West, which means that first-time home buyers have fewer options to choose from.

Experts say that a seasonal rise of inventory may occur in the spring of 2013, however it may not bring about a seller's market. Much of the West is already a seller's market, though, for homes that cost under a million dollars, and conditions are even more balanced in the Northeast.  Existing-home sales are expected to increase 9% in 2013 which mirrors the rise of 2012.

All of this indicates that the housing market is steadily becoming stronger. If you are interested in purchasing a home this year, call Quest Loans to get the best rates and best service around! 888-883-5252.

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