Sales Increase While Inventory Decreases in United States Housing Market

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The United States residential real estate market once again showed signs of improvement during the month of October. According to the most recent data reports, sales increased by more than one percent from September, and are up almost fourteen percent from October of last year.

Despite the increase in home sales, many analysts believe that the residential real estate market could actually be performing better than it is. They cite the struggling job market, and the toughened lending restrictions as being the reason as to why the housing market has not seen more substantial increases.

They believe that more people are trying to buy houses than the numbers indicate, but most potential homebuyers run into a roadblock along the way that prevents them from moving further with their purchase.

In fact, more than thirty percent of contracts failed in October, which is a number that is up more than fifteen percent from September. The failures are generally due to such factors as a declined mortgage application, job loss, or problems reported through home inspection. Had the number of contract failures been cut in half, the United States would have experienced a substantial increase in the number of home sales.

The average price for homes sold continues to be down from last year, though there is hope that prices will soon start to increase. Inventory levels continue to drop. In October, the decreased by more than two percent. As inventory continues to fall, overall housing prices will likely start to increase little by little.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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