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Survey Says: US Housing Economy Strong
By Amanda Jones
The USA's strong economy and consumer demand made record
homes for sale possible in 2005 despite destructive hurricanes,
rising mortgage interest rates and higher energy costs. Chances are
high that a sustainable, more balanced housing market will be the
cornerstone of the U.S. economy in 2006.
In the latest random national survey, findings are consistent with
both nationwide housing sales data and forecasts of top industry
economists.
In the past six months, there has been a softening of the market,
with fewer multiple home offers and buyers negotiating for closing
cost assistance. The length of time it takes to sell a house has
increased dramatically. About 75% of house sellers in a survey said
it was taking over 30 days to sell homes. 30% of those respondents
said it was taking over 60 days. 30 days ago only 52% of
respondents said it was taking over 30 days, with 30% saying over
60 days.
The good news is that first time buyers are very active, house prices
are staying level and price appreciation is on the rise. Currently,
82% of survey participants say they are getting 95% or more of
asking home prices. This compares with 80% in the third quarter
and 90% in the second quarter of 2005.
First-time buyers currently account for about 35% of home sales.
This percentage has stayed about the same for the last six-nine
months despite price and appreciation spikes on the East and West
coasts and in Florida, Phoenix and Las Vegas. Repeat and move-
up buyer activity remains strong.
Investor and second-home demand has slowed however. Multiple
offers are down as well. Currently, only 50% of respondents report
multiple offers. A more balanced real estate market between buyers
and sellers demand has emerged in many parts of the country.
Inventory of unsold homes is growing. 65% said the trend is up in
local real estate markets. 55% report a good supply in all price
ranges. Only 38% reported a good supply six months ago.
Overwhelmingly, survey respondents said job and population
growth continues to fuel housing demand in local markets.
About the Author
Author A.Jones is an expert in Real Estate and Finance associated with Dalzell Group. http://www.dalzellgroup.com
Article Source: http://www.simplysearch4it.com/article/27920.html
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