43 Urban Village Live + Work New Construction written by: Frank Vigliotti, Realtor®, Global Sales…
Real Estate Fort Lauderdale | Florida Realtors | Henri Frank Group
New data released from the National Association of Realtors indicates the average time it takes to sell a home has decreased. The amount of time that it typically takes to sell a home in July was 69 days which has declined 29.6% from the 98 days required in July of 2011. These numbers are close to the those of a healthy market and are lower than the recurrent peak noticed in 2009.
This average is based on a broad array of homes. Roughly 33% of homes sold in July were only on the market for less than 30 days and 20% of homes were sold in less than 6 months. The lack of inventory has caused homes on the market to sell faster. These trends were originally noticed in spring of 2012 and have helped to develop a balance between the amount of buyers and sellers in the market. This balance has helped to influence growth in home prices and decrease the amount of time that accurately priced homes stay on the market.
At the closing of the month of July, there was a 6.4-month inventory of homes on the market that is 31.2% lower than the 9.3-month supply calculated in July of 2011. The National Association of Realtors notes that a in a neutralized market, the amount of time it takes to sell a home is a little more than 6 weeks. These numbers reinforce the fact that the housing market is on its way to a recovery. Data from the Consumer Price Index, home prices in a neutralized housing market typically increase 1-2 percentage points higher than the rate of inflation.
Representatives from the National Association of Realtors project that the average price for home resales increases to 4.5% to 5% this year and another 5% in 2013.
CPI growth is forecasted at 2.1% for 2012 and 2.3% in 2013. Data collected by the National Association of Realtors from 1987 to 2011 indicated that the average time to sell a home was 6.9 weeks and the average supply of homes for sale was 7.0 months.
The National Association of Realtors released a new measure that shows how long distressed properties took to sell in comparison to traditional home sales. The studies concluded that distressed properties generally took at least three months longer to sell. The average time it took to sell traditional properties ranges from roughly six to seven weeks. When the housing market was thriving between 2004 and 2005 and the housing inventory was about 4.3 months, the average time it took to sell a home was 4 weeks. Prices throughout this period increased 10.3% annually.
In 2009, the average time it took to sell non-distressed properties was roughly 10 weeks and there was about a 10-month supply of properties. This average declined 12.9% in 2009 which was the largest annual decline ever. If new construction on residential properties does not improve within the next two year, the lack of inventory could last for an extended period of time and cause depreciation of equity in properties nationwide. The National Association of Realtors calculations of the amount of days a home for sale is on the market will be considered in upcoming home resales. The average time it takes to sell a home can be inaccurate at times but if there is a large amount of properties introduced in the market, the amount of time it takes to sell a home may be drastically distorted.
If you are looking for a Realtor to sell your South Florida home, contact the Henri Frank Group at Remax Preferred.
We can be reached at 954-604-9999 or their online Virtual Office Website at https://henrifrank.com/meet-henri-frank.php
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The Real Estate Group specializes in South Florida, Broward, Palm Beach and Miami-Dade Counties. Fort Lauderdale Real Estate, Real Estate Wilton Manors, Real Estate Oakland Park and Miami Beach real estate.