Although national home sales declined by 7% year-over-year, this graph portrays a more accurate picture of the housing market as a whole. It’s important to note why home sales in the $0-$100,000 range have decreased so dramatically — distressed home sales continue to fall, impacting overall home sales. Elliot Eisenberg, Ph. D. and independent economist, has been studying home sales and offers more detail.
Year-over-year, distressed sales fell from 25% of sales to just 15%, a drop of 10 percentage points. This is more than the 7% drop in sales, indicating that non-distressed home sales are actually growing. “The total volume of non-distressed sales is higher than it was a year ago. Relax,” says Eisenberg. Experts indicate that home sales would be up more if the inventory were available. See Low Inventory Once Again a Major Player in Real Estate Market for more details of the impact on the market.
Categories: Quarterly Newsletter