Housing Market Behaving Like Normal
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IRVINE, CA—For the first time in years, the housing market is behaving as if it is in a normal environment, says Rick Sharga, EVP of Auction.com. Spring housing numbers from Case-Shiller and the FHFA index grew, and the latest trends including increased home sales, moderated pricing levels, decreased mortgage rates and improved inventory. In this video, Sharga offers his interpretation of what the latest data suggests.
Indeed, all things point to a continuing recovery for the housing market. As GlobeSt.com reported last week, “Distressed sales continue to represent a smaller share of the overall sales pie nationwide, helping to boost median home prices higher given that distressed sales tend to be in lower price ranges,” according to Daren Blomquist, VP of RealtyTrac. The firm reports that distressed and short sales were doen to 14.3% of US residential sales in May, down from 15.6% in April and down from 15.9% in May 2013.
While still active, however, the recovery does appear to be decelerating if we study pricing. As GlobeSt.com reported in May, the slowdown in home price growth continued in March, as the S&P/Case-Shiller Home Price Indices released recently showed a 12.4% year-over-year gain for the 20-City Composite Index, the smallest increase since last July, while the 10-City Composite rose 12.6% Y-O-Y. However, two cities in the 20-city index, Dallas and Denver, have reached all-time peaks, and separately the Federal Housing Finance Agency reported Tuesday that home prices have now increased for 11 consecutive quarters.
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