Success for April Home Sales Doesn’t Diminish Market Doubt

by davesingery on June 3, 2013

in Latest News, Los Angeles, Orange County, real estate

A recent report from San Diego-based DataQuick reveals that although the month’s overall home sales increased, job security, tax increases, and other market uncertainty will ultimately limit growth.

It is even believed that these concerns are so real that when weighed in light of other factors, they will eventually contribute to reductions in the market’s housing demand, according to the data provider’s April Property Intelligence Report (PIR).

The report, a bare-bones breakdown of the key findings for April, was gleaned from DataQuick’s national property database and expert analytics spanning 42 of the largest counties in the United States. More specifically, the report examines valuation trends, REO inventory trends, and sales trends metrics for the counties.

Broken down to the basics, April’s assessment is as follows:

Regarding home price growth, April saw positive results in 28 of the 42 counties over the last month. Spanning the last quarter, 28 of the 42 also saw an increase, and over a year, 30 of the 42 counties saw a positive rise.

Home sales saw increases in April, with 21 of the 42 counties over the last month witnessing a rise. In March, only 10 counties experienced month-over-month growth. Eleven of the 42 over the last quarter improved, compared to six counties during the same time period in March. The year’s period saw a bump in 23 of the 42 counties.

Foreclosures fell in 25 of the 42 counties over the last month, and saw a quarterly decrease in 29 of the 42.

Although sales is showing signs of progress, Gordon Crawford, Ph.D., VP of analytics for DataQuick, noted obstacles still remain that could hinder growth.

“The increase of sales in April is a sign of improvement; however, the continued strength and growth is questionable given impeding factors that prevent investors, sellers and buyers from actively participating in the market,” said Crawford.

He further explains that, “[j]ob security, tax increases and uncertainty surrounding domestic fiscal issues, continue to hinder growth and will contribute to eventual reductions in the demand for housing.”

Crawford also points to the existing problem that strict mortgage credit requirements and only moderate, increasing employment numbers lessen the borrower’s chances of qualifying to purchase a home.

“The low levels as to which sales are increasing reflect tight supplies on the market, multiple offers for listed houses and homes selling at prices that are in excess of the asking price,” he said.

Simply put, Crawford concedes that, “[p]otential sellers aren’t entering the market as prices rise, because of their uncertainty and/or negative equity.”

DSNews.com
By: Andy Beth Miller
05/31/2013

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