Real Estate Market Reaches Equilibrium between Buyers and SellersPosted by Nick Niesen on November 8th, 2010 Three months ago, the ?Current Market Conditions? survey showed that overall the U.S. housing market was displaying a rare balance between buyer demand and seller supply for the first time in eight years. The latest quarterly survey shows that equilibrium has been achieved -- 41% of real estate agents said more buyers than sellers; 40% said there were more sellers than buyers, and 19% reported a 50-50 balance. ?Fifty-six percent of real estate agents said it is now on average, taking more than 60 days from listing to contract to sell a house. This is up from 55% in the first quarter and 35% a year ago. Twenty- eight percent said it is taking more than 90 days to contract. Only 15% of existing homes for sale are selling in 30 days or less. ?Housing inventories are continuing to increase: 86% now report a good supply of homes in virtually all price ranges. This is up from 81% in the first quarter and 38% a year ago. ?The percentage of home sellers getting 95% or more of asking prices is currently 68%, compared to 90% a year ago. Three months ago it was 75%. ?Multiple offers from home buyers are also down substantially. Currently, the estimate is 32%. It was 39% in the first quarter and 70% a year ago. ?First-time buyers still account for one of three homes for sale nationally. Repeat and move-up buyers are most active in higher priced real estate markets. Recent home price appreciation and rising mortgage rates & interest rates have had only a minimal negative effect on first-time buyers, on average. Exceptions are marginal qualifiers. ?We welcome a balanced, more orderly marketplace for both the consumer and real estate professionals,? said Michael Bearden, president and CEO of HouseHunt, Inc. ?Double-digit price appreciation is simply not sustainable for a multi-year period and will eventually drive away entry level buyers.?
U.S. South Midwest Northeast West California* Chicago* More Buyers 50-50
0-60 days More than 60 days Sale vs. Ask Price: 90-95% 95% -100% Plus Annual Apprec.: 5% or less 5-10% More than 10% Inventory: Good Supply Limited Supply Multiple offers: Yes Activity: First Time Buyers Move-Up & Repeat *California survey percentages are included in both U.S. and West results. Like it? Share it!More by this author |