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April 25, 2012

Expecting More Seller Price Concessions? Spring Is Not the Time.

The March existing-home sales data from the National Association of Realtors show that home sales are up again from a year ago, registering the ninth consecutive year-to-year growth. On a month-to-month basis, however, both March and February show declining sales volumes from the previous months, providing little sign of the beginning of the spring homebuying season.

Nevertheless, a seasonal pick-up in home sales as well as for-sale listing activities is widely expected in the coming months. Record lows of home prices and mortgage financing costs will continue to play out favorably for potential homebuyers.

Rising seasonal demand in the spring is also typically, and not surprisingly, associated with homesellers offering smaller price concessions.

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