Experts Say that the Housing Market is on the Rise

It's been a buyer's market for quite awhile now in the housing market. Prices have been low and sometimes, for home owners, way too low. While it’s great for young, first-time buyers, for anyone trying to get out or a company trying to sell property, it definitely hasn't been a seller's market.

In the Red but Headed to Black

In fact, in most places around the country, selling property now would be like willingly handing the house over due to declining values and so many people in the red with their mortgages. The past five years have made it very tough for homeowners.

It has been this way for a few years now, but the National Association of Realtors (NAR) now says that the market is on the rise though creeping rather slowly.

In the past year, the housing market prices have been going up, reports members of NAR and sales themselves have gone up from the previous year. Due to the lower prices in housing, investors and families seeking a place of their own to live and own have been buying houses again.

This has led to greater sales this past April, which amounted to 9.9% higher than that of April 2011. The same went for this past March in which sales were 3% higher than the previous year.

Greater Home Sales

Other good news is that the month of April brought 400,000 home sales, which was an 11.1% increase over March and its 360,000 home sales. This is the first time since 2010 that we have had a month-to-month increase in sales from that of the previous year.

According to the NAR, if this trend in housing purchases continues, there will be an eventual return to a seller’s market. 

Prices Increasing

Along with greater housing sales, prices are increasing. The national average for housing prices has risen from last year's average, which was approximately $161,000 to about $171,000 this past April, rising just over 10% in a year.

If the sales continue to rise along with the prices, the housing market will eventually migrate from a buyer's market to a seller's market sometime in the near future.

As if mirroring the country's median price, the local market in New Mexico is statistically on the rise as well. These past couple month's home sales have been noticeably higher than last year's spring season, and these months sales have risen consecutively.

While in smaller numbers, if every other state begins to follow these numbers, the housing market may finally recover and the dream of homeownership will become a reality for many more.  

Posted by Indigo Mortgage at 11:22 AM No comments: