The nation's inventory of unsold homes - an important component
of a more balanced housing market in the second half of 2005 -
is growing steadily in many areas of the country even though
buyer demand continues strong, according to the latest
HouseHunt, Inc., quarterly "Current Market Conditions" survey.
The percentage of member real estate agents reporting plentiful
vs. limited supplies increased from 33% in the first quarter to
38% in April, May and June.
Exceptions would be South Florida, Arizona, Southern California
and certain other housing and job growth hot spots.
Market equilibrium would be attained when the present 4.3-month
national housing supply increases to about six months, or about
a 50-50 buyer-seller ratio.
HouseHunt, Inc., is a consumer-oriented Internet firm that
provides valuable free information to homeowners, home buyers
and home sellers. Survey results are based on Current Market
Conditions sales data reported by HouseHunt's Exclusive Agent
Referral Network (EARN) members in 47 states. Survey results
also included:
* Average national home price appreciation slowed to eight to
10% on an annualized basis in the second quarter as compared to
higher, more substantial double-digit price increases in
12-month comparisons in the past two to three years.
* First-time buyer activity declined from 40% in the first
quarter of this year to 35% in the second quarter even though
mortgage interest rates continued near historic lows and funding
is available and relatively easy to find in interest-only and
other exotic loans.
* Nine of 10 home sellers are getting 95% or more of their
asking prices. Nearly half of those are getting 100% or more. An
overwhelming majority of sellers are still getting multiple
offers.
* Sixty-five percent of listings are selling in 30 days or less.
Michael Bearden, president and CEO of HouseHunt, Inc., welcomes
the near-term probability of a slower-paced, more balanced
housing market: "This would be positive news for consumers,
particularly for first time and other entry level home buyers.
Slower appreciation and a plentiful supply of unsold homes would
certainly energize the entire market in all price ranges. It
would also dissipate fears of a housing bubble price collapse."
HouseHunt's two primary websites,
www.HouseHunt.com and
www.moveUp.com, offer consumers free information on local
communities, free on-line access to property listings, free
on-line sales data on recent home sales in their neighborhoods,
free electronic property-matching (where available), buying and
selling information, and access to some of the nation's
top-producing and most knowledgeable real estate agents
regardless of brand affiliation or geographic limitations.
About the author:
Monte Helme is a national public relations consultant with
HouseHunt, Inc. Previously, he was vice president of public
relations and publications for Century 21 Real Estate Corp.;
vice president of communications for AmeriNet Financial Services
(now LendingTree); assistant city editor/Orange County for the
Los Angeles Times; executive sports editor of the Rockford, IL,
Morning Star and Register-Republic; and reporter for the Dixon,
IL, E
