Home prices and sales rose at the fastest pace in 7 years in the last quarter of 2012, providing more evidence that the real estate market recovery is solid.
Lawrence Yun, National Association of REALTORS chief economist, reports that all conditions needed for strong price growth are currently at play, including:
1. Increasing home sales
2. Record low interest rates
3. Lowest inventory of unsold homes in 12 years
These factors are playing a big role in motivating those who have been waiting on the side-lines, to get back into the market.
"Home sales are being fueled by a pent-up demand and job creation, along with still favorable affordability conditions and rents rising at faster rates," Yun said. "Our population has been growing faster than overall housing stock, so supply and demand dynamics are very much at play."
Rising activity in California continues to be impacted most by limited number of houses for sale, and a strong desire to buy now ahead of an appreciating market. These factors have contributed to the return of more competitive offers and bidding wars on well-priced homes.
What is clear is confidence in the market is strong and, as a result, we have quickly gone from a "Buyers" to a "Seller's Market".