Creative Buyers, Brokers Keep Sales Humming Despite Lack of Listings

home-for-sale-fiveWhen inventory gets tight the realtors that show imagination and market knowledge will normally rise to the top. For a more detailed look at this subject please read the article below.

The FHA Condos Approval Company, Inc.

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Many in the real estate industry believe there is a listing shortage, but a close look at the numbers suggests buyers in most markets are purchasing homes in increasingly larger volumes—even if some of those sales involve off-market homes not listed for sale.

In July there was a 5.1-month supply of unsold existing homes, unchanged from June but down from a 6.3-month supply in July 2012, according to the National Association of Realtors (NAR). But despite the lower inventory, the volume of home sales continues to increase.

“Existing-home sales,” NAR reported, “have stayed well above year-ago levels for the past two years, while the median price shows seven straight months of double-digit year-over-year increases.”

In most businesses, everyone is elated when sales increase. For those in real estate, more sales equal more opportunities to generate transaction commissions, which is a good thing. And yet, the real estate community is somehow concerned when sales have been increasing month after month for nearly two years and prices are 11 percent higher than a year ago.

“The robust housing market recovery is occurring in spite of tight access to credit and limited inventory,” said NAR Chief Economist Lawrence Yun back in May of the April numbers. “Without these frictions, existing-home sales easily would be well above the 5-million unit pace.”

It turns out home sales did exceed that 5 million pace the very next month, in May, as well as in June and July, according to NAR—even with the frictions still in place.

To read the complete article please use the link below.

Sales Humming Despite Lack of Listings

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