Foreclosures on homes in many U.S. cities lead to investors purchasing these “distressed” homes at deeply discounted prices. Consequently, the value of the other homes in these cities declined as well.
However, some good news has been released about this sector of the real estate market. According to an article published in DSNews.com by Brian Honea, there has recently been a decline in the number of distressed homes for sale. More specifically, as of May 2016, the number of distressed homes for sale decreased by 4 percent over the year. The lower inventory of foreclosed, REO and short sale homes has helped increase the demand for homes and, subsequently, increased the home values in those areas.
Honea quotes CoreLogic Chief Economist Frank Nothaft, “Overall, the homes-for-sale inventory remains relatively lean, while demand to buy homes has increased because of an improving labor market, more optimistic levels of consumer confidence, and continuing low mortgage rates.”
To learn more, read the entire article.
Photo Credit: Taber Andrew Bain
According to an article published by the National Association of Realtors (NAR), the sale of existing homes nationwide has increased 6 percent since April 2015. Additionally, the median home price for existing homes is up 6.3 percent since last April. Although the total housing inventory is showing some upward movement, it is still lower than it was a year ago.
Lawrence Yun, NAR chief economist, indicated “The temporary relief from mortgage rates currently near three-year lows has helped preserve housing affordability this spring, but there’s growing concern a number of buyers will be unable to find homes at affordable prices if wages don’t rise and price growth doesn’t slow.”
The supply of entry and mid-priced homes is still low and the market for these homes will likely be the most competitive in the coming summer months. However, proposed changes to FHA condo rules could eliminate some of the obstacles that stifle condo sales. These changes would allow more first time home buyers an opportunity to purchase a condo and enter the real estate market.
For more information, read the entire article.
Photo Credit: Marcel Suliman