Categorized | Residential

Average Home Prices Hit New Low Despite Increase in Sales

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The residential real estate market in the United States continues to struggle to find its path to a strong recovery. The most recent reports show a good indication that recovery may be near, as home sales increased by almost six percent. However, with that being said, the average price of those homes fell to its lowest in the last year.

Even with the latest growth, many real estate experts are very cautious about being optimistic when it comes to the residential housing market. They have set an annual sales target of seven hundred thousand homes, and believe that only when that number is hit will the United States have a considerably healthy property market.

One of the reasons why housing sales do not appear likely to hit that target number is that there is a fairly limited supply of homes on the market. Many homeowners who may have at one time considered selling their home have opted to wait until sale prices increase once again. As such, there are less than two hundred thousand homes available for buyers today.

Another indication that the United States housing market continues to struggle is the very weak numbers that it achieved during the six-month peak period from March through August. The number of sales during that period this year was the lowest it has ever been despite record-low mortgage rates.

Experts believe that the housing market may not experience a sustainable recovery for at least the next year, With a job market that continues to struggle, lenders becoming very stringent, and buyers opting to wait for even lower prices, the housing market may continue to drop slightly, or at least remain stagnant for the next few months.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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