Even though the existing home sales rose a measly 2.7% according to the National Association of Realtors, it is the third month in a row of increase and the first time in seven months that a month performed better than the same month the year prior, having risen 5.3% over January 2010.
Although the challenge of financing buyers remains, there are hints at a buyer’s market (whereas we’ve been in a no one’s market for a while). The conditions are favorable for a buyer’s market because mortgage rates remain at historic lows, single family home values have dropped for six months in a row, new home builders’ confidence is up based on foot traffic and there is a lot of inventory to choose from with the unfortunate glut in the market.
We are still navigating tricky waters, but any glimmer of hope that buyers or sellers will benefit from changing marketing conditions is good for all. A buyer’s market means perception will shift and as traditional news outlets begin talking about the shift, sellers will benefit from benchwarmer buyers finally taking the step into more favorable waters.