REAL ESTATE RECOVERY UPDATE
The real estate recovery continues to be strong, according to the National Association of Realtors with a big 7.4 percent increase in home sales last month.
Current sales are 44 percent higher than last year and sales are up in every region of the country.
Sales including single family, condos, townhomes, and cooperatives are up in every region of the country as well.
The last 2 months in a row, sales totals were higher in all price classes. For most of the year, by contrast, only lower and moderate priced houses saw sales gains, higher cost properties have be selling also and inventories of houses were down at the end of the year.– 16 percent below where they were the year before.
Lawrence Yun, chief economist for the National Association of Realtors, said a last-minute rush by buyers hoping to close on properties before the scheduled November 30 deadline for the $8,000 first time buyer credit added a lot of sales to the impressive November total.
Congress extended the November 30th closing deadline for the first-time buyer credit until June 30th of next year — and added a new $6,500 credit for repeat purchasers to the mix.
Right now is the perfect time to purchase a home.With the current combination of low prices, low mortgage rates and the tax credits has created an exceptionally attractive environment for buyers around the country.
Meanwhile, Fannie Mae’s year-end forecast for 2010 suggests that sales of existing homes next year should jump by another 10 percent over this year, and new home sales should be 26 percent higher.
Like other forecasters, Fannie Mae sees rising mortgage rates hovering on the horizon, but not so high that they will scare away serious purchasers.
Builders are still building new homes and still have inventory to get rid of, so there are many great deals. There are foreclosures that banks want to sell and in many cases for 50 – 60% below market value.
Again, With the combination of low prices, inventory, low mortgage rates and the tax credits has created an exceptionally attractive environment for buyers whether first time or buyers wanting to buy larger homes for their expanding families.