In the first three months of 2012, in spite of foreclosures, realtors saw the demand for residential real estate grow. Properties were listed for shorter time periods and the asking prices were not always lowered. Fewer sellers were forced to accept a lower offer.
A leading property analyst claims this upturn might be attributable to seasonal sales trends. The first three months of the year are usually quite active. An improved economy is likely to have played a part in increased sales. More jobs result in more people being able to afford to purchase homes.
One major metropolitan area reports residential properties stayed active for nearly four months in the first quarter of this year. That compares favorably with the former time period of five months during the last quarter in 2011. Although it indicates improvement, it is still a relatively long time prior to selling. The point at which one can claim a reasonable length of availability is 2 months.
A significant amount of pressure is still placed on sellers to lower their asking price. The first quarter reported 88 percent. Due to almost unprecedented low interest rates, the business of real estate sales should be brisk. Especially in view of the fact those rates are expected to increase radically at some point.
One reason for the market making a slow recovery is the tight lending requirements imposed by the banks. The realtors blame the strict lending requirements are preventing many applicants from being approved. The former lenient mortgage lending practices were a contributing factor to the foreclosures that have flooded the market with unprecedented reduced prices for these homes to be sold for. They have now taken a completely opposite stance. It has closed the door to home ownership for many potential buyers.