According to the Mortgage Bankers Association’s National Delinquency Survey, the fourth quarter 2013 delinquency rate for mortgage loans and loans in the process of foreclosure, fell to their lowest levels since the beginning of 2008.
Now according to the National Association of REALTORS®, existing home sales fell 5.1% in January 2014 when compared to January 2013. But the median existing home price for all housing types was up 10.7%. The percentage of short-sale and foreclosure properties sold in January 2014 was 15%. That is down from 24% a year earlier.
Inventory is low. I hear it from REALTORS© all the time, and the data shows it. Typically 6 to 6.5 months of inventory is desired to keep a healthy balance between buyer and seller. As of January there was less than 5 months of inventory.
So to sum up, inventory is low and distressed sales are shrinking causing prices to rise. We said a year ago that the data was pointing towards a coming sellers’ market. So is it here? I’m not ready to declare it, but things are definitely improving for sellers. Keep in mind that these numbers are nationwide and all real estate is local. It is important to seek the advice of a full time real estate expert in your area. Call us at 847-963-0400 for any of your real estate needs, or visit us at www.C21TPG.com.