Wheatland Realty Agent Nicole Tudisco sets the record straight on what is really happening with the housing market.
Recently while reading Bloomberg.com, one particular headline screamed out at me. The headline read “Pending Sales of Existing Homes in US Decline for Eighth Month.” Another report stated that housing sales have the worst result since the recovery began in September 2011. While these articles on declining home sales are on first glance startling, you really have to read further into the articles and the data to understand the whole picture. Basically, we are getting rid of our distressed inventory and replacing it with regular inventory. Now we certainly will need more home owners to decide to sell to get those decline of sales up but the decrease in distressed inventory is a good thing!
If we look at the cumulative number of total sales for the last 12 months over the prior 12 months you, can see below that sales are up over all. It’s a different story if looking at them Month over Month or from a broad national perspective.
The other perk in getting rid of the distressed inventory is that it allows for the home values to rise. We’ve heard about some reports warning of another housing price bubble. This next chart is great because it goes state by state showing that since the peak of the recession in our state of Illinois we are still 15% below the top prices so we are not near a housing bubble. We still have a long way to go.
Lastly, another great sign of 2014 home values and sales is that Morgan Stanley and Barclays have not wavered on their original 2014 home price projections. That says something ! Don’t forget Real Estate has and continues to be the best investment long term!
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Nicole and Tony