The median sales price of residential properties in the US, increased by one percent in March 2014, compared to the median price in February. The rise mounts up to 10 percent when compared to the median price same time last year.
The first signs of the US housing market snapping out of hibernation were seen at the beginning of March 2014, after six months of sluggish business. Top Realtors note that markets get typically sluggish during the fall and winter months. The one percent monthly increase in March occurred after the median sales price of residential real estate properties had been shifting between decreasing or remaining flat for six consecutive months.
On an annual basis, the increase represents the biggest hike in 24 months. Standing at $164,500 at the end of March 2014, the median price rose the highest since crashing at the bottom in the March of 2012.
Does This Mean Prospective Sellers Can Expect Better Rates?
According to some real estate agents in Orlando, it does. The spring buying season is being well received by residential real-estate buyers throughout the nation. With the decline in rates of unemployment, recovery of markets across the U.S., and cuts in the mortgage rates, buying sentiments have increased.
In the Orlando real estate market alone, realtors have seen growing enthusiasm from first-time buyers, second-home buyers as well as owners who have powered through the distress and can buy their properties back. They reveal that 34 percent of the total homes sold in the country in March were purchased by second-home buyers or investors.
An increase in sales volume is another proof of improving sentiments. Sales volume in March was up 0.4 percent from the volume in February 2014 and up by eight percent from the volume in March 2013. While still below the most recent peak reached in October 2013, the trend is largely positive.
More Owners are Now Selling Their Homes, Adding to the Inventory
The nationwide increase in annual sales volume is not without 21 of the country’s largest metros witnessing a decrease in their yearly sales volume. In Orlando, the volume in March was down 12 percent, compared to a year ago.
There are several silver linings though. One is the positive trend in housing inventory. The low-inventory situation has eased up in 38 states in total, which according to some real estate experts can be attributed to the increase in distressed sales. In comparison with the last quarter of 2013, the percentage of distressed sales increased nationwide in the first quarter of 2014. So has the percentage of non-distressed property owners who have regained enough equity to be able to relist their houses on the market.
