My Real Estate Blog

Existing-home sales were on the rise during the first quarter of 2011, according to the National Association of Realtors. The rising sales trend in nearly all states is a part of the healing process to clear off inventory. Sales need to rise before prices can firm up.

Regionally, sales increases were seen across the board. The West experienced the biggest rise, jumping 13.5%. This took the existing-home sales rate to 2.1% above year ago levels.

Following the West's lead was the South, which increased 8.5%. The Midwest had the third strongest rise, increasing 7.9%. And increasing just 0.8% was the Northeast (with the exception of the Metropolitan DC Area).

The good news is bank-owned properties, which account for two-thirds of all distressed homes sold, are selling very quickly.  Short sales still take far too long to get lender approval, but it appears the inventory of distressed property is peaking and will be gradually declining next year. This means the market should slowly return to balance.

Recent home buyers are having exceptionally low default rates.