Earlier in the year, buyers who were waiting for the market to bottom out decided the time was right to take the plunge. The spring market was busy and some buyers found themselves in bidding wars with other buyers. The increased demand for homes has caused a decrease of 9.3% in the number of homes for sale at the end of August, 2013 compared to the end of August, 2012.
With the increase in demand for homes, sellers expect sale prices to have increased more significantly than they actually have. On average, prices have increased by 2.4% this year.
Interest rates have increased over the last few months. Time will tell whether the increase will have a significant effect on the rate of home sales.
