Statistics won’t always tell the whole story, but they often provide good perspective. The graph above shows Existing Home Sales data going back three years. An “existing home” is one that can’t be called new construction; a “used home”, so to speak.
Note the steep decline from 2005 through late-2007. Since November, however, Existing Home Sales have remained within a very tight range and appear to have reached a flattening point.
The Existing Home Sales data supports the word-on-the-street from real estate agents nationwide that buyers are returning to the housing market in search of good values. But let’s not forget — demand is only half of the story. There is the supply factor, too, and the supply side of the housing market is showing the same leveling signs as the demand part.
Looking at the chart of national inventory below, the number of existing homes for sale has hovered near 4.5 million for the last several months. No change suggests stabilization.
Now again, statistics won’t tell the whole story but there are plenty of positive signals from the real estate market right now, just like there are negative ones, too. This is one reason why real estate data causes so much debate — people want to take an either/or proposition about the state of the real estate and it doesn’t work like that. Throw the tightening of mortgage underwriting guidelines into the mix and you have fodder for cocktail party debate.
Real estate can be simultaneously strong and weak and when it is, buyers look for value. Perhaps this is why the national housing data is beginning to level off after a 3-year slide. There’s good values to be had, and today’s home buyers know it.