According to themortgagereports, the National Association of Realtors (NAR) says rising rents, a favorable lending environment and low mortgage rates are driving the market for homes nationwide. In January, the median time for homes to be on the market was 69 days—half the homes sold in less than 69 days, the other half took more time to sell. In July, that number dropped to 42 days, which amounts to a 40 percent reduction of time being listed with MLS.

Although median days on the market is not a foolproof housing metric, it can be instructive. However, homeowners may take risks if they perceive the economy is performing well, and jump into buying a home. But it could also mean sellers are anxious about finding a buyer, and may be willing to accept a lower than desired price, which can affect the days on the market.

The third reason for quicker home sales could be the rise in rents. In some markets, MHProNews understands a house payment may be less than monthly rent—it’s certainly true across the board in the manufactured home market—which can be an encouragement to take assume risk.

However, the current 4.8 month supply of homes for sale is said to favor sellers over buyers in negotiations, given that low supply should strengthen demand and thus increase the price. If job growth and wages increase, and the economy improves (notwithstanding the downturn in the stock market), home sales will likely rise regardless. ##

(Photo credit: mattheafey)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.