According to homebuyinginstitute.com, there are more buyers acquiring home properties due to improvements in economy and job sector. Also, home construction in roughly two- thirds of metro areas in the US are getting behind in producing new homes up for purchasing. Due to these scenarios, housing market will favor more the sellers than the buyers.
Seller's market is rolling up as demands for houses listed for sale surpasses the supply. Houses sell more quickly and sellers get the opportunity to ask for a full price or sometimes, higher than the house's full price. Home value also increases rapidly pushing home prices up the roof.
Home shortages have made property values to go north in many US cities, particularly cities in California. Though home construction industry is doubling their efforts, they're still getting behind the country's job growth that's causing the housing properties sell like pancakes.
Lawrence Yun, chief economist with NAR, said "In addition to slow housing turnover and the diminishing supply of distressed properties, lagging new home construction - especially single family - has kept available inventory far below balanced levels."
In a report by bizjournals.com, homes listed for sale stayed on the list for only 64 days. The demand also pushed home prices to $224,900, 2.7 percent higher than last year August's percentage. The closed home sales also increased with 7.8 percent to 5,811, which makes up a total of 15.7 percent this year.
Mike Hoffman, president of Minneapolis Area Association of Realtors, said "The August numbers show that homes are selling in near-record time and that sellers are getting close to full list price." High demand in housing units cause for the homes to sell "for about 99.3 percent of their final list."
The positive results of the housing market is believed to be caused by improvement in unemployment rate over the summer that yielded a 3.7 percent unemployment rate as opposed to national average of 5.1 percent.
