Home Property Sales In The US Go Up In October As The Inventory Continues To Go Down
The National Association of Realtors (NAR) has released the word on improved home sales within the United States in the month of October as the inventory continues to a steady decrease in volume.
Total home sales include transactions that have been completed on properties such as single-family homes, townhomes, condominiums, as well as co-ops.
The country has experienced a rise of 1.4 percent which leads to a seasonally adjusted annual rate of 4.97 millions in the month of October from a 4.90 million rate in the month of September which marks a percentage of 13.5 above the 4.38 million unit level for the month of October in 2010.
According to the NAR chief economist, Lawrence Yun, the market has been showing a steady behavior despite being at levels that are lower than what would have initially been hoped for. Recent home sales seem to have been coming mostly from a relatively narrow range of options even though there have been a number of factors which would have otherwise improved the situation.
As far as recorded contract failures, the NAR has reported an increase of 33 percent in the month of October from 18 percent in the month of September which shows that real estate buyers really have been going through some difficulties in the process which also leads to a situation that goes against what was anticipated as far as sales are concerned.
Contract failures are transactions which have been canceled as a result of mortgage applications which have not been approved, loan underwriting failures, and other issues which include home inspections as well as employment losses.
The national average commitment rate for a conventional 30-year fixed-rate mortgage has dropped to an all-time low of 4.07 percent in the month of October from a 4.11 percent figure from the previous month. In October 2010, that rate was at 4.23 percent.
Moe Veissi, president of the NAR, shared that real estate buyers today will find that they have an increased change of obtaining a mortgage by being aware on how credit scores are determined.
Among the mentioned factors mentioned to be useful in being able to successfully obtain a mortgage would be to avoid credit cards and installment debts, paying bills in a timely manner, proper maintenance of previous credit lines, and a strict observance of spending no more than 30 percent of the total credit limit.
Also noted on the market is a trend which indicates a steady decrease in the volume of homes which are available on the market inventory. Total housing inventory has dropped 2.2 percent to 3.33 million homes for sale on the market, showing an 8-month supply based on the current pace of home sales.
In October, the national median home price for all types of housing was $162,500 which depicts that it is 4.7 percent below what it was in the same month of last year. Distressed home properties had dropped to 28 percent of total sales from the previous month’s 30 percent which included 17 percent foreclosures and 11 percent short sales.
There have been certain areas within the country which have been faced with a shortage on foreclosure properties within their available inventories. As a result, realtors within those areas urge for speedy processing in order to cater to the demand for such properties. Furthermore, the extension of credit to investors who are considered responsible should also prove to be beneficial in allowing for a better inventory absorption rate.
29 percent of purchases made in October involved all-cash sales with the majority of these transactions being brought in by investors as 18 percent of homes sold ere sold to investors while 34 percent of total sales were sold to first-time home buyers. Also, there was a 1.6 percent increase in single-family home sales while condominium sales remained the same.