The National Association of Realtors recently released statistics that provide further evidence of the strength of the recovery in the residential Real Estate market. The NAR reported that 2013 was the best year for the sale of existing homes since the boom year of 2006, when 6.5 million homes were sold.
The 5.09 million single family homes, condos, town homes and co-ops sold in the past year surpassed 2012 total sales by 9.1 percent. In December 2013, existing homes sold at a seasonally adjusted rate of 4.87 million per year. This figure was approximately one percent higher than November's figures. Furthermore, 2014 is expected to have continued growth, according to the association.
Lawrence Yun, NAR Chief Economist, suggests that there are a number of reasons for such strength in existing home sales: Low mortgage interest rates, job growth and pent-up demand.
The association also reported that the median price for an existing home in the U.S. was $197,100, an increase of 11.5 percent. This represented the largest increase since 2005. As 2013 came to a close, there were 1.86 million homes for sale nationwide.
NAR President Steve Brown cited two reasons for the recovery of the residential Real Estate market not being even stronger. First, inventory continues to lag behind traditional volumes. There was only about a five-month supply of homes available as 2014 got underway. Second, restrictive mortgage lending policies continue to represent a roadblock to certain prospective home buyers.