An article found in the Residential Specialist magazine is showing that distressed home sales fell from 26% of the U.S. home sales market in 2012 to 17% in 2013 and 15% in the first quarter of this year according to the National Association of Realtors.  The group expects distressed sales will account for just a single-digit market share by the end of the year. All cash home purchases meanwhile rose from 29% in 2012 to 31% in 2013 and 33% in the first quarter of this year.  This could reflect increasing consumer confidence as the economic recovery continues. “Distressed home sales, popular with investors who pay cash, have declined in the past two years, yet the share of all cash purchases has risen, says NAR chief economist, Lawrence Yun.   “A majority of foreign buyers pay cash as well, and the five-year bull run of the stock market has provided financial wherewithal among higher wealth households,” says Yun. So how does this affect the everyday world of real estate?  I have found that listings are not having as much trouble appraising now that a neighborhood isn’t saturated with foreclosures and short sales.  Buyers are once again looking at homes for the long terms benefit rather than finding the best deal and cheapest price.  Home buying is back to a well thought out process, determining a buyer’s needs and goals. A good Realtor will listen to your needs and find homes accordingly.  With interest rates still reasonably low, it’s a good time to get started with your home buying plans.

Carol Kamm – Grandview Realty

Serving Bradley, Hamilton, McMinn, Monroe, and Polk Counties, Tennessee

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