The real estate market has seen a slight fall in sales since October, dropping 3.2 percent. October’s annual rate was down from September’s 5.29 million to 5.12 million. The good news is that this year’s sales are up 6 percent from last year’s. Even though the market has seen monthly decreases since September, prices are up. We’ve seen 28 straight months of increased rates on a yearly basis. Prices are also on the rise, up 12.8 percent since October of last year.
The drop in sales rates and rise in prices can be connected to fewer homes being on the market. From September to October there was a 1.8 percent decrease. October’s market had 2.13 million existing homes for sale. The West had the largest drop at 7.3 percent. The Northeast annual rate fell 20,000 and the Midwest had a decrease of 1.6 percent. Median prices fell in the Midwest and South and rose in the Northeast and West. The Midwest saw a fall from $157,400 to 154,700 and the South decreased from $172,100 to $171,500. In the West price medians came up to $284,800 from $283,000 and in the West the increase there was a 17.2 percent increase in prices year-over-year.
Analysts believe prices will keep growing at a slow and steady pace. Mortgage interest rates should stay fairly low through the rest of the year. The lower the rates the friendlier the market is to buyers looking to purchase. Foreclosures and short-sales make up just over 24 percent of the market’s inventory. This four-year low helps ensure the market remains stable as long as new batches of foreclosures don’t enter the market. The recent government shutdown, the still high unemployment and other factors will prevent prices from rising out of control. This is all good news for buyers.
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