In a report, CoreLogic economists, led by Chief Economist Dr. Mark Fleming, analyze the current housing market conditions, including why home sales are not increasing, in part, because of limited inventory of desirable homes and buyers not finding what they want to purchase.
Key findings in the CoreLogic May MarketPulse include:
>> Cash is all the rage in the purchase of condominiums. As of January 2014, Florida and Nevada had the highest U.S. cash sales share for condos, with shares of 81.2 percent and 80.5 percent respectively.
>> The U.S. Census Bureau, the National Association of Realtors and the Mortgage Bankers Association all indicated that March home sales slowed further, emphasizing the lack of available inventory could be to blame.
If we analyze the situation further, home sales fell by 2 percent year over year in April 2014 to a non-seasonally adjusted annual sales pace of 5.10 million, 0.5 percent higher than the 5.07 million pace reported for March 2014. Despite the decrease in total home sales, sales of existing homes increased by 10 percent year over year and sales of newly constructed homes increased by 7 percent. The decrease in home sales came from distressed sales, which fell by 50 percent year over year.
After reaching a trough in August of 2013 of 375,000 properties, the number of real estate owned (REO) properties increased 15 percent to 430,000 as of March 2014. The increase in REO properties was broad based, rising in 46 states. While the increase was moderate nationally, some states had large increases. Idaho led the way with the stock of REO properties nearly doubling between August 2013 and March 2014.