NEW HOME SALES SURGE IN JUNE WHILE EXISTING HOME SALES DROP

June 24, 2013 –  A trend in motion is likely to stay in motion……. This adage continues to  be true in the mid year housing reports. As reported in past blogs, builders have been huge beneficiaries of the chronic lack of existing home supply for sales in markets all around the country. This will change, but the question remains a simple one: “When?”

National housing reports for June, 2013 show that new home sales surged by a record amount, up 8.3% to a level not seen since May, 2008. My sense is that the local numbers will reflect this trend. Meanwhile, existing home sales dropped 1.2% as the mysterious unwillingness of home sellers to list their homes for sale continues. With prices rising quickly, I have expected more listings to hit the market, but that is still not the case. Home builders and developers continue to cheer this trend, as the lack of competition from existing homes is allowing them more pricing power and greater volumes. 

Buyers have poured into new developments in large part because there is nowhere else to go. Potential sellers should note that this upward price trend, which I have predicted for the last two years, is very likely to level off in the near future. The window of opportunity for a quick sale may not be open for as long as you expect nor be as wide as you expect once potential sellers decide that it is a good time to move on. There will be a more normalized flow of new listings; it is not a question of “if”, but a question of “when.” 

 

Ray Wedell

Chartered Financial Analyst, CFA

RE/MAX Gateway

703-855-7299

http://www.raymaxinternational.com

 

Advertisements

About RayWedellRealEstate

Real estate professional with Samson Properties. Chartered Financial Analyst, CFA
This entry was posted in Uncategorized and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s