There's good news for people hoping to buy a home this year: A new report shows that national housing inventory, or the number of homes on the market, rose 2.2 percent between April and May. The latest data from the National Association of Realtors (NAR) shows a 5.6-month supply of homes if the current sales pace holds steady, with 2.28 total existing homes on the market. Greater inventory typically leads to lower prices.
Earlier this year, real estate and economic analysts worried that too little inventory might stall the housing recovery, pushing prices up and hurting buyers. However, the NAR report has eased those concerns. Economist Tom Simons told Bloomberg News that it paints a very positive picture for the rest of 2014.
"The housing recovery is going to continue," Simons said. "Income levels are going up, rates are at least not going up anymore, and prices are stabilizing, so all that blends into a good picture for affordability."
Interest rates were down last month, giving potential buyers even more incentive to start seriously shopping. Data from government-owned mortgage giant Freddie Mac shows that the average 30-year, fixed interest mortgage rate in May fell to 4.19 percent. The previous two months it had held steady at 4.34 percent.
This is a terrific time to buy a new home, as increased inventory holds prices down and low interest rates continue. If you're interested in seeing Northern California homes for sale in Sacramento, Placer and El Dorado Counties, contact me, Jon Hesse. As one of the area's top real estate agents, I have completed more than $100 million in property transactions and can help you find a home to call your own!