Existing-home sales could reach normalcy in 2013, according to Lawrence Yun, chief economist for the National Association of Realtors (NAR). Yun suggests that the market’s continued progress largely depends on ”sensible lending standards and stronger job creation.”
Home prices are inching up around the nation. The median existing-home price for all housing types was $187,300 in July, marking a significant increase of 9.4 percent from one year ago. The average fixed-rate mortgage fell to 3.55 percent in July from 3.68 percent the month before, according to Freddie Mac. In July 2011, that rate was 4.55 percent. Distressed homes made up 24 percent of all July sales, down from 29 percent in July 2011.
Some market analysts wonder if housing may lead the charge to economic recovery. Kevin Mahn of Forbes highlights three key factors for sustained market growth:
- Sales for single family homes over $100,000 have increased from one year ago in almost every region across the nation.
- Inventory levels dropped by 3.2 percent in June, while excess supply fell by about 26 percent over the past year.
- Across the U.S., the sales prices of existing homes have increased by nearly 8%.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, had this to say to households interested in selling. Price your house correctly, and it will move quickly. “Fully one-third of homes purchased in July were on the market for less than a month, and only 21 percent were on the market for six months or longer,” said Veissi.