10 Interesting Facts About the Housing Market

Guest blogger: Dick Greenwood, Director, Builder Marketing

Buying Vs Selling Two-Way Street Sign

  1. At today’s prices and rents, buying would be cheaper than renting until the 30-year fixed rate mortgage reaches 10.5%. (Source: Trulia)
  2. Even at a 5% fixed rate, buying would be 34% cheaper than renting. (Source:Trulia)
  3. Prices have increased so much that homeowners with negative equity have fallen to less than 20% of all borrowers. (Source: Bloomberg)
  4. “Flash sales” are happening in the Chicagoland market. Flash sales are when a home is sold within 24 hours of listing. This is because of the use of technology, especially instant mobile alerts for new listings. Gone forever are the days of waiting two weeks for the 10 pound “MLS” book to be printed. (Source: Wall Street Journal)
  5. Buyer competition is so stiff that in some markets we are seeing a quarter of the sales going for more than asking price! (Source: Orlando Sentinel)
  6. Dick GreenwoodNationally this spring home prices rose to the highest annual growth rate in seven years according to the S&P/Case-Shiller index. (Source: Case-Shiller Index)
  7. Demand among homebuyers is so high in some parts of the country that builders are holding lotteries to decide who gets to purchase homes in their developments. (Source: CNN Money)
  8. In this market, both buyers and sellers are winners. Sellers love the rising home prices and affordability remains high due to low interest rates for buyers. (Source: WSJ Market Watch)
  9. As the market is improving, REOs and short sales have been a significantly smaller part of the business. Nevada had one of the highest rates of foreclosures. Not any more. 90% of all currently available homes are non-distressed traditional homes with equity. (Source: RISMedia)
  10. In a Bloomberg poll, 71% of Bloomberg customers say the recent home price increase in major U.S. markets is evidence of a genuine recovery in values. (Source: Bloomberg)

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