1/22/2014 - Report: Home sales speedy last year
Looking back homes in 2013 were snapped up at a pace that vastly exceeded the rate of 2012, according to newly released home purchase data.
In the U.S. during the month of September, for example, the median amount of time residences were listed for sale before they were purchased was 86 days, statistics from home listing website Zillow confirmed. That's approximately one month down from 2012, when the median was 116 days.
Using the same time period, certain metropolitan statistical areas experienced a quicker pace of sales than others, led by San Francisco at 48 days, Sacramento at 59 days and Dallas at 60 days. In fact, in all 30 of the MSAs tracked, properties sold more quickly than they did when compared to year-ago levels.
Stan Humphries, chief economist for the online Seattle-based real estate source, indicated that the speed of purchases largely had to do with supply levels.
"The declining inventory of for-sale homes over the past year naturally creates pressure for buyers to more quickly buy up the inventory that is on the market," said Humphries. "This demand has been fueled by huge resets in home prices since market peak, historically low mortgage rates and a slowly improving broader economic climate."
Separate data indicated that consumers didn't necessarily rush into these purchase decisions. In the third quarter last year, the delinquency rate for home mortgages fell to 6.4% - the lowest level recorded since 2008.
Certain requirements are needed before a mortgage is approved, including a homeowners insurance plan, employment history and a credit report.