The Sky Is Falling – NOT!
If you are familiar with my articles, you will know that I have chided CNN in particular and the media in general for their reporting of the real estate market. What CNN reported is factually correct, but their presentation gives a skewed perception of what is taking place in the real estate market these days.
Their article today reported: “Sales of existing homes stumbled in June…” Let me make it clear, that is a true statement. June 2013 home sales did in fact dip 1.2% from May 2013; however, June 2013 sales are up 15.2% from June 2012. A 15.2% increase year over year is a very substantial increase, but the sky is falling mentality of many of our media outlets look for what sells, not necessarily reporting the whole picture.
There is still a lot of pent-up demand for homes and in many areas the lack of inventory is causing sales to be less than robust. This same scenario is also causing home prices to rise in many areas.
Inventory levels are determined by the number of homes on the market in relation to the average time it takes a home to sell. One year ago the national average was 7.6 months of inventory on the market. Right now it is around 5.2 months – a very significant drop.
In addition, home prices climbed 13.5% in June 2013 compared to June 2012. This was the 16th consecutive month of gains in home prices.
If you are thinking of buying or selling, I urge you to talk to a REALTOR who can give you the answers you need to make an informed decision. First time home-buyers: I recommend starting to work with a REALTOR about a year ahead of your target day for home ownership.
As always, if I can help with any of your real estate needs, please feel free to call me at 615 417-8182 or email me at RolandLow1@gmail.com