FOUR PILLARS OF THE CURRENT HOUSING RECOVERY TRACY ROYCE
1. Increase in the sale of non-distressed
properties:
Wall
Street
As shown by the records of the
Journal,
short
sales
and
foreclosures accounted for nearly 18% of all
made in April. The credit for the increase in sales
goes to the banks offering loans at record low
interest rates. In short, buyers can swallow the
increase in housing prices because of the minimal
increase in the mortgage payment.
the sales made in April, which is 10% down
from the last year. Many experts are surprised
that the unavailability of distressed properties
3. Sudden boom in listings last month: It
had no impact over the number of sales
is a very well known fact that Spring brings
incurred this month. Further, it shows that
thousands of buyers into the market, and this
buyers are moving towards non-distressed
could account for the 11.9% rise in sales in the
properties. However, those needing to short
housing market. There has been an increase
sale are poised to unload their property faster,
of 1.8% in the current real estate inventory and
whether by a successful short sale, or the
the overall increase in inventory in 2013 is
bank taking the home back.
recorded to be 4.8%.
2. Increase in sales as compared to last
year:
According to the reports of the WSJ, the
number of homes listed for sale (2.16 million)
was down by 13.6% as compared to last year,
yet it had no impact over the number of sales