Featured News

Home Sales Dropped in February

Last month home sales fell by 7.1% compared to February 2013 when a number of homes sold was 4.95 million. This meant home sales reached the lowest level seen for any month since July 2012.

The experts are blaming the drop on the weather as well as the QM rule which was introduced in January and which had been anticipated for the previous six months. They point out that much of the country was disrupted by unusual weather patterns last month, combined with continued restrictions on mortgage lending, low inventory levels and less affordable housing compared to a year earlier. In addition some transactions are being delayed so there is hope these figures will improve in the coming months. It's anticipated that home sales will rise modestly this year due to the expected increase in job creation figures.

© Slavomir Valigursky - Fotolia.com

This view is reasonably upbeat, but the article in RISMedia goes on to point out that other leading economists are viewing these figures slightly differently. They think the weakness in figures for existing home sales has now been continuing for quite some time and should be taken into account, particularly by the Federal Reserve. Yet another view is that spring should see a bounce back in figures, and that although the drop in sales is due to lower inventory, higher prices and tighter credit, the housing market is still on an upward trajectory.

In February the numbers of foreclosures and short sales accounted for 16% of sales compared with 15% the previous month, and 25% in February last year. When these figures are broken down even further then 5% were short sales while 11% were for foreclosures. Foreclosure homes sold for an average discount of 16% while short sales sold for an average discount of 11%.

Figures for housing inventory show that by the end of February it had increased by 6.4%, reaching 2 million existing homes for sale. This is a 5.2 month supply at the current rate of sales, compared to 4.9 months in January. The median time homes spend on the market was 62 days in February compared to 67 days in January and 74 days in February 2013. Short sales took an average of 94 days to sell last month, and foreclosures took an average of 60 days. Non-distressed homes took an average of 61 days to sell. In February 34% of the homes sold were on the market for less than a month

Allison Halliday

Allison Halliday is a Realty Biz News contributing writer. She handles International Real Estate and is a seasoned blogger.

Recent Posts

5 Reasons to Keep Your Personal Information Private

As technology evolves, it has become easier to access information, from our accounts to those…

2 hours ago

How to Qualify for an Owner-Occupied Home

When it comes to investing in real estate, purchasing income properties can be the biggest…

2 hours ago

What is Unskippable and What Are Its Functions

“Unskippable,” a new video marketing series created by Twitter, has been making serious waves since…

3 hours ago

What about buying a modern bookcase for your interiors?

Everyone who reads a lot of books needs a bookcase. This article will tell you…

10 hours ago

What Are The Requirements For VA Loan Inspections

VA appraisals and VA inspections are often confused, but they are different. A VA appraisal…

10 hours ago

How to Effectively Run a Real Estate Marketing Campaign: The Best Tools and Methods to Get Results

With 40 million people on the move each year, there's a clear need and market for real…

1 day ago