National home sales fell by 5.1 percent in January compared to the year before, but not for the usual reasons. There are still many buyers who want to buy, unfortunately there aren’t enough homes on the market. A news release by Realtor.org provides more info on this development:
Existing-home sales fell in January to the lowest level in a year-and-a-half, but ongoing inventory shortages continue to lift prices in much of the U.S., according to the National Association of Realtors®.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, dropped 5.1 percent to a seasonally adjusted annual rate of 4.62 million in January from 4.87 million in December, and are also 5.1 percent below the 4.87 million-unit pace in January 2013. Last month’s level of activity was the slowest since July 2012, when it stood at 4.59 million.
Lawrence Yun, NAR chief economist, said unusual weather is playing a role. “Disruptive and prolonged winter weather patterns across the country are impacting a wide range of economic activity, and housing is no exception,” he said.
The news release adds that home prices are still escalating. In January, the median existing home price stood at $188,900, up 10.7 percent from a year ago.
There’s no doubt that rising home sale prices will limit buyers, and so will rising interest rates. First time buyers, who normally account for 40 percent of buyers in normal markets, occupied only 26 percent of the market in January. That’s the lowest it has been since October 2008, which suggests that higher home prices and mortgage rates are starting to have an impact. The bad news is that rates are expected to rise even more in 2014.
With all these considerations in mind, now would be a good time to purchase homes for sale in College Station, TX. Buying later instead of sooner may subject you to heftier prices and interest rates.
If circumstances are keeping you from purchasing your intended property in the near future, you’ll need help keeping track of the trends. Real estate experts like The Traditions Realty Team can provide you with the assistance you need to smoothly purchase homes for sale in College Station, TX.
(Source: Existing-Home Sales Drop in January While Prices Continue to Grow, National Association of REALTORS®, February 21, 2014)