An “existing home” is a home that’s been previously occupied and is not considered new construction.
The number of existing homes sold on a rolling 12-month basis is now at its highest point since May 2010, the month before the federal home buyer tax credit ended. It’s also up some 40% since July 2010, the month after the tax credit ended.
Here in the Blue Ridge Mountains, a recent Market Report in Fannin County showed that the inventory of cabins for sale in Blue Ridge, GA. was down 19%, and a Union County Market Report showed that homes for sale in Blairsville was down 26%.
But that’s not the biggest story in the Existing Home Sales report. The precipitous decline in home inventory deserves more attention.
At the current pace of sales, the complete, national home resale inventory will be sold in 7.6 months. This is close to 5 months faster as compared to last year’s peak, and well below the 2-year home supply average of 9.0 months. There more buyers in the market, it seems, and fewer homes from which they can choose.
Total home resale inventory is down to just 3.38 million homes nationwide — the fewest in 12 months.
There were other interesting statistics in the official Existing Home Sales report, including a break-down of purchases by buyer-type.
- First-time buyers accounted for 29% of purchases, down from 33% in January
- Repeat home buyers accounted for 48% of purchases, up from 47% in January
- Investors accounted for 23% of of purchases, up from 20% in January
In addition, distressed sales — foreclosures and short sales — made up 37 percent of the market.
Over the next few days, more housing data will hit the wires and it’s expected to show similar strength to January’s Existing Home Sales report. With falling supplies and a growing base of move-up buyers, home prices in Blairsville, Blue Ridge and all over the North Georgia Mountain Real Estate Market are expected to rise in the coming months ahead.
- Pending Home Sales At The Highest Levels Since April 2010 (thefrontporchview.com)