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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Decreased Housing Inventory in California

Quest Loans is based right here in sunny California! Recently, we heard that our lovely state has been hit hard by a low inventory situation. We all know that California can be pricey, but for first-time home buyers seeking lower-priced homes for sale, the stakes have just gone up! According to Zillow's latest analysis that keeps track of the number of homes for sale across the country, California's numbers are low.

As a lending company, we are definitely on the homeowner's side! So we'd like to recommend that you begin your house search soon in case these numbers continue to dwindle. The blame for a decrease in the number of available homes for sale partially falls on investors who are snatching them up to rent out to you.

However, we know that not everyone wants to rent. If you are able to find a home that you can see your family growing in, please give us a call so we can help you qualify for the loan right away! With a limited inventory, it is important to take these first steps soon!! 888-883-5252

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Home Sales on Rise for 13 Straight Months!

According to the July RE/MAX National Housing Report, home sales have been on the rise for the past 13 consecutive months! The home sales in July 2012 were 10.3% higher than they were in July 2011. It shows that the housing market is finally improving. Median home prices are now higher than they were last year, and have been for 6 months in a row. The only challenge that this recovering market is seeing now has to do with housing inventory. The amount of homes that are available for sale has decreased by 26.8% compared to last year. In fact, if there was a greater inventory available to homebuyers, home sales would most definitely be higher. There is an increased demand but a shrinking inventory. The only things that are lacking now would be lower unemployment rates and better availability of mortgages.

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Sales for New Homes Slowed

According to HUD and the U.S Census Bureau, the sales figures for newly built, single-family homes has slowed down 8.4%. It is now sitting at a seasonally adjusted annual rate of 350,000 units for the month of June. This comes off of a steady increase that the previous months have had. Despite slowing, the sales numbers are indeed up on a quarterly and yearly basis. Builders are gaining more serious buyers too, so the news is positive overall. However, builders are still facing issues with tight inventory of new homes for sale. Having a larger selection of new homes for sale would make things easier for them, but they also face issues with obtaining credit to build new homes.

The figures for Pending Home Sales has declined in June as well. The steady decline of housing inventory proves to be an issue for more than just builders. While buyers continue to show interest in purchasing homes in this market, there are fewer and fewer homes listed and available, which leads to fewer contracts signed. It is speculated that the amount of homes for sale will need to double over the next two years in order to meet the demands of the market for both rentals and ownership. Part of the reason that there are not many homes for sale is that people have been taking advantage of low interest rates. They are opting to refinance their existing homes rather than buy new homes.

If you are in the market for a new home or even to refinance your current home, don't hesitate to call Quest Loans. We would love to help you with this process! 888-883-5252.

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New Home Sales Increase in May

According to HUD and the Census Bureau, the month of May saw an increase in the sales of newly built homes. The sales rose by 7.6% which amounts to a seasonally adjusted annual rate of 369.000 homes. While there was an increase overall throughout the country, these sales were very regional. The Northeast had new home sales increase by 36.7% while the Midwest actually declined by 10.6%. This all indicates that more potential home buyers are being drawn to the housing market because of the current low mortgage rates. The steadying and slowly recovering economy is lending more confidence to home builders and home buyers alike. Despite the increase in new home sales, however, the inventory of new homes for sale remains at a low 145,000 units in May. Compared to March and April, though the month of May proved to have solid growth which will eventually lead to an increased need for the construction of new homes.

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Existing-Home Sales Prices Increased 3.4%

According to the National Association of Realtors, existing-home sales have increased in the month of April, and home prices are continuing to climb. These sales rose 3.4% compared to March throughout the country. This is a good indication that the housing market is finally recovering. It is not just the investors who are buying these homes anymore, we are seeing an increase in homes being sold to actual occupants again. This is helping home sales of all prices, causing the market to become more balanced. Housing inventory rose 9.5% at the end of April, totaling out at 2.54 million existing homes that are for sale. The national median price for an existing home is $177,400, which is up 10.1% from last April. It is expected that 2013 will bring further increase in sale prices.

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