The spring home buying season is off to a stronger start than at this time last year, with modest price increases and a spike in inventory, according to realtor.com’s National Housing Trend Report for March.
The number of properties for sale on realtor.com® in March rose 9.5% above March 2013 levels, to 1,841,844 units, according to the report. The median list price of $199,900 was 5.3% higher than in March of last year, and the median age of inventory increased 22.9% above the year-ago figures, to 102 days on the market, the report’s data showed.
These figures suggest that the market is more balanced than it was in 2013, when a shortfall in available supply led to double-digit increases in many markets’ housing prices.
Having more homes on the market may mean more affordable prices for first-time and move-up buyers. Lack of inventory in 2013 led to intense competition, creating another barrier to homeownership.
“Bidding wars in many markets last year frequently elevated offer prices beyond the reach of first-time buyers who could scarcely save for the down payment,” said Steve Berkowitz, CEO of Move, Inc. “While inventory is still low, the continuing annual lift in the number of homes on the market that we’ve seen over the first months of 2014 is an indicator that buying conditions this year may be notably improved from the frenzied pace of last spring.”
Despite the positive signs, home sales activity remains sluggish, and low inventories remain a significant factor in housing market health. The National Association of REALTORS®’ Pending Home Sales Index for February showed a 10.5% decline compared to the same period in 2013, the eighth-straight month of decline for pending sales. However, the number of contracts signed has remained fairly stable over the past three months, and NAR reported that buyer traffic is showing a modest turnaround.
Read full article at: http://www.realtor.com/news/realtor-com-report-higher-inventory-welcome-sign-spring-buyers/
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