Summer is almost here – typically a busy season for home sales. This year, there could not be a better market for buyers.

Let’s look at what we know:

• Home prices fell to 9-year low. According to data from the S&P Case Shiller Home Price Indices, home prices are back to 2002 levels. The national index declined by 4.2% in the first quarter after falling 3.6% in the fourth quarter of 2010. This means the national index hit a new recession low.
• Sales of new homes increased in April, for the second straight month. Sales increased 7.3% to a 323,000 unit annual rate, the highest since December, according to the Commerce Department’s report. April also marked the lowest inventory level of new homes in a year. These are certainly positive signs of underlying strength in this market segment.
• Inventory of previously owned homes remains high. NAR’s numbers show there were 3.87 million previously owned homes on the market in April. But economists estimate the number could be much higher – between 7 and 8 million if foreclosed properties and those at risk of foreclosure were taken into account. It’s the “shadow inventory” effect.

Buyers this summer have the best of all worlds: Low interest rates literally shave thousands of dollars off the price of a home; high inventory levels offer a shopper’s paradise in terms of choice; inventory also puts downward pressure on prices; prices are at a new recession low; and nothing major has changed in lending regulations that would cause issues.

Calling all home shoppers: This summer is the season of your real estate dreams. The fences are buckling under your weight, and the grass is much greener on the ownership side if you’re ready. For buyers in most parts of the country this is the perfect time to buy. Call us today to learn more. Remember, sales could pick up as more buyers realize conditions for buying can’t get much better than this!