It was a long road back, but it now appears the housing market has reached a point where fundamentals and home buyers are driving the market. RealtyTrac’s latest May U.S. Home & Foreclosure Sales Report brings good news. This report shows 24.6 percent of May’s single-family home and condo sales were all cash-based, and bank-owned sales were down 9 percent from last year at this time. In May, distressed sales dropped to a low of 10.5 percent. This is approximately 8 percent less than one year ago. Foreclosure property sales were down nearly 2 percent as well.
It is evident the market is no longer rewarding investors who are out for short-term gains. Instead, it is helping serious buyers interested in establishing primary residences for the long-term.
As the job market offers more opportunities to the public, individuals are looking for stable housing possibilities. This means buyers want liveable homes that make it easy to settle down. It is becoming less attractive to purchase a home for ” quick flipping” or “safe haven” purposes.
Coming out of the housing crisis, buyers are savvier than ever. They are crunching the numbers and understand what they can afford to pay for monthly mortgages. The people showing up at open houses and real estate offices are serious buyers who are ready to make deals. Also, more and more renters are able to save money for down payments as well. With these continuing trends, prosperity is on the horizon as the real estate industry grows and remains stable.