Real Estate Market

April 2015

Existing Home Sales Report

According to the National Association of Realtors®, sales of existing homes grew slightly in February, but limited inventory moved price growth to the fastest pace seen in a year. Total existing-home sales, (which tracks completed transactions for single- family homes, townhomes, condominiums and co-ops) increased 1.2 percent to a seasonally adjusted annual rate of 4.88 million in February, up from 4.82 million in January.

Sales were 4.7 percent above a year ago; additionally, sales were higher than year-over-year totals for a fifth consecutive month. The median price for existing homes for all housing types was $202,600 in February, which is 7.5 percent higher than February 2014. This represents the 36th consecutive month of year-over-year price increases, and it's the biggest gain since last February (8.8 percent).

Existing Home Sales By Region

NAR's chief economist, Lawrence Yun, said that while February sales displayed slight improvement, in recent months the market has seen some stagnation. Said Yun, “Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsuitable levels.” Yun added that, “Stronger price growth is a boon for homeowners looking to build additional equity, but it continues to be an obstacle for current buyers looking to close before rates rise.” Yun also noted that, “Severe below-freezing winter weather likely had an impact on sales as more moderate activity was observed in the Northeast and Midwest compared to other regions of the country."

Total housing inventory at the end of February rose 1.6 percent to 1.89 million existing homes available for sale, but this remains 0.5 percent lower than a year ago (1.90 million). 

Listings remained on the market for 62 days in February, a reduction from 69 days in January and the same as a year ago. Short sales stayed on the market the longest at a median of 120 days in February, while foreclosures closed in 58 days, and non-distressed homes sold in 61 days.

NAR Generational Study

The 2015 National Association of Realtors® Home Buyer and Seller Generational Trends study offers some interesting insights. Despite the economic and financial headwinds young adults have faced since the recession, the millennial generation represented the largest share of recent buyers, according to the 2015 National Association of Realtors® Home Buyer and Seller Generational Trends study.

Interestingly, the survey discovered that a strong majority of buyers search for homes online and then buy their home through a real estate agent, with millennials using agents the most. For the second year in a row, NAR’s study found that the most sizable group of recent buyers were millennials, those 34 and younger, who comprised 32 percent of all buyers (31 percent in 2013).

Generation X, those age 35-49, were next with a 27 percent share. Millennial buyers represented more than twice the amount of younger boomers (ages 50-59) and older boomer (60-68) homebuyers at 31 percent. The Silent Generation (ages 69-89) made up 10 percent of buyers in the past year.

Here are a few takeaways from NAR's Generational Trends study:

  • Gen Y comprises the largest share of home buyers at 32 percent, which is larger than all Baby Boomers combined.
  • Gen Y also has the largest share of first-time buyers at 68 percent.
  • At least 80 percent of buyers who are aged 59 and younger bought a detached single- family home; it is increasingly common for buyers over 59 to purchase townhouses and condos.
  • Among all generations of home buyers, the first step in the home buying process is looking online for properties for sale. Younger generations of buyers typically find the home they purchase through the internet, while older generations of buyers first found the home they purchased through their real estate agent.

The Best Selling Strategy

Sellers, you have an excellent opportunity to sell your home this season, if you have the right pricing strategy in place from the start! Studies show that the longer a property stays on the market, the less the seller will net upon the sale. It is very important to price your property at a competitive market value at the signing of your listing contract. The market is so competitive that even over-pricing by a few thousand dollars could mean that your house will not sell.

An Overpriced Home:
· Minimizes offers
· Decreases agents response
· Limits qualified buyers
· Decreases showings
· Decreases prospects
· Limits financing
· Wastes advertising dollars
· Nets less for the seller

When you are ready, contact us today for a personal market value analysis of your home. No hassles or obligation - just honest advice on how to get top dollar for your home!

Contact Information

Photo of Gwen and  Doug Campbell - Sun Bay Realty Group Real Estate
Gwen and Doug Campbell - Sun Bay Realty Group
at Keller Williams Realty
35095 US Hwy 19N, Suite 100
Palm Harbor FL 34684
Gwen's Cell 727-741-4744
Doug's Cell 727-741-4189
Fax: 888-447-7908