COLUMBUS, Ohio--(Residential Finance Corp. (RFC), a nationwide mortgage lender.)--The existing home sales report released today confirms the housing market is showing substantial recovery as home prices continue to rise while inventory levels continue to decline, according to mortgage industry expert Barry Habib, vice president and chief market strategist at
“Distressed inventory and distressed home sales are becoming less of a factor”
New home sales as well as the number of building permits are up sharply, reflecting positive news in the housing sector and creating an opportunity for homebuyers today. After 15 months of continued rising home sales, the median home price currently sits at $183,000, according to Habib.
“Distressed inventory and distressed home sales are becoming less of a factor,” Habib pointed out, “and that trend is anticipated to continue.”
The increase in the median home price on a year-over-year basis is up 11 percent, which really shows that distressed properties are being removed from the market and are becoming less of a factor. So the overhang, or shadow inventory, does not have as much of an influence on the market. So, home prices do appreciate to some degree, but not by 11 percent.
“Levels of inventory are declining significantly, it is almost unprecedented to see the levels of decline that we are currently,” said Habib. “We are seeing 20 percent reduction in inventory on a year-over-year basis. With much less supply, and potentially increasing demand, the only result possible is higher prices. Once again, this is a good time to be a homebuyer; individuals looking to purchase a home today will be handsomely rewarded in the future.”
Housing inventory numbers continue to testify to the health of the market and the opportunities that exist for homebuyers, Habib added.
About Barry Habib
Barry Habib is vice president and chief market strategist at Residential Finance Corp. Habib is a frequent speaker on financial markets, housing, negotiation, sales training, building relationships, technical trading analysis and staying motivated at industry events and conferences. He appears regularly on Fox Business Network and CNBC Network where his segment, The Monthly Mortgage Report has appeared for over 13 years on Squawk Box.
About Residential Finance Corp.
Founded in 1997, Residential Finance Corporation (RFC) (www.residentialfinance.com), offers homeowners and homebuyers nationwide a wide range of home mortgage loan options, including special lower-rate government-insured FHA and VA loans, residential mortgage loans, jumbo mortgage loans, and reverse mortgages. RFC’s highly-trained staff delivers mortgage expertise and customer service excellence, winning the company many awards, including Columbus Business First Corporate Caring Award, Columbus Business Journal Best Place to Work, Florida Trends Best Company in Florida, American Business Award Sales Department of the Year, Inc Magazine INC5000 Fastest Growing Company, and American Society of Training and Development Excellence in Practice. Headquartered in Columbus, Ohio, RFC has branches throughout the country, and is seeking loan officers and branch managers to join their network of branches. For more information contact, Jessica Manna at 614.255.4317 or www.myrfccareers.com. NMLS#1652. Equal Housing Lender. Equal Opportunity Employer.