There was good news to report nationwide that increased confidence for Realtors, brokers, builders, and home buyers alike. In August, 2013 existing-home sales were at their highest level in 6.5 years. Also, the median sales price of homes showed 9 consecutive months of increased home sale numbers in the double-digits annually compared to the previous year’s numbers. Existing homes, also called resales or previously-owned homes included home sales statistics for single-family homes, townhomes, condominiums and co-ops.
The exact percentage increase in sales for August, 2013, was 1.7% to 5.48 million homes up from 5.39 million sold homes in July. This is 13.2% higher than existing homes sales from August, 2012. This is the highest escalation of home sales pace since February of 2007, an indicator that the real estate market is truly turning in an upward direction.
Mortgage rates have been steadily increasing over past months, which may have something to do with the push for home closings in August. Also, it is a seller’s market out there for both new and existing homes because of the lack of inventory of standing homes for sale. Both of these factors may be reasons for the high sales numbers in August. Currently, there is only a 4.9 month supply of homes for sale down from a 6-month supply the same time in August of 2012. Large metro areas such as Boston, Detroit, and Naples, FL have sold out their inventory of homes for sale so much so that the percentage of decrease in standing inventory is over 20% for those markets.
Statistics from Freddie Mac indicate that loan commitments for 30-year, conventional, fixed-rate loans went up from 4.37% in July to 4.46%, which is the highest percentage it has been since July, 2011, when the average interest rate was 3.6%. Home prices have been on the rise and are expected to level off as 2014 approaches, but of note, there was an increase in the home pricing average of 14.7% from August of 2012 to $212,000 being the median home price on resale closings in August. Home prices have gone up for 18 consecutive months compared to the same 18 months in the previous year. Only 12% of the sold homes in August, 2013, were short sale or foreclosed home with short sale closings at 4% and foreclosure sales at 8%. This is down from 23% in August, 2012. With a “disappearing” investment market, this will further stabilize the real estate industry, new construction efforts by builders, as well as homeowner confidence for 2014.
At Bedico Creek, our new homes for sale do not stay on the market long, and we are constantly receiving contracts and closing homes in our subdivision. Also, many builders and private buyers are purchasing new lots in the 6 available community neighborhoods. Builders are starting to build spec homes, and many buyers are in the middle of the floorplan design process for their custom home. If you haven’t visited Bedico Creek lately, come check out how the national real estate numbers are “hitting home” in our new home subdivision in St. Tammany Parish. Call 985-845-4200 or e-mail Info@LiveBedico.com for more information.
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