Home Sales Trouble

Less than the favorable amount of home sales, decreasing affordability, appraisal problems, and lender administrative delays are what is impacting todays home sales the most, so says REALTORS® Confidence Index Survey. This survey was sent to over 50,000 real estate professionals regarding their last transaction.

Despite all the issues, those heavily involved in the real estate market stay confident for the future. The confidence level was about 50 according to the survey; as well it is higher than this time last year.

The survey also said that since home prices are becoming less affordable, it’s expected that prices will come down a bit, and grow at a slower pace of 3.3%.

It’s believed that less homes being sold, or on the market, the multiple offers homes are receiving are resulting in significant price increases. The June numbers stated that 41$ of homes sold above the original listing price.

It’s beginning to become a problem when the supply of homes is so short that it’s pushing affordability away from first time homebuyers, who are struggling to save enough for a down payment. The median family income has increased since 2012 by 11%, all the while the median price of a used home has risen by 62%.

The National Association of Realtors believes that homes are still “generally affordable”, and the gap between actual and qualifying income for first-time home buyers is widening. NAR estimates their median income is currently around $44,700, which is barely above the qualifying income of $42,700.

Most real estate deals are being completed on time, but a whopping 32% are stumbling over delays. Only 6% were cancelled. The issues were mostly from financing trouble which was apparent 41% of the time. 27% were from appraisals, 11% from inspections, and titling and/or deed issues at 10%. 

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