LOCAL MARKET UPDATE
Here are the most current & accurate real estate statistics — specifically for our area. We saw a 17% increase in residential home sales in April, 2009 compared to April last year. 65% of all sales in April were “Bank-Owned Foreclosures”. This is a significant and quick decrease in the percent of sales that are “Bank-Owned”. Typically, at least 75% of the sales each month have been “Bank-Owned” for the past year. Another significant and quick change is the amount of listing inventory. Comparing April, 2009 to April, 2008 — there is a 37.6% decrease in number of houses for sale on the market. This has changed our supply and demand situation drastically. However, we expect this situation to change back to more of a buyer’s market again soon. Here’s why; there has been a moratorium on bank-owned property. We have been told that the banks will lift their moratoriums and start releasing foreclosed properties over the next four months, which will increase listing inventory again. Does that mean you should wait for more inventory if you are a buyer? No, and here’s why. Last week we saw a 1/2% interest rate increase on home loans. That is equal to $75 per month increase in a mortgage payment on a $200,000 loan. There is currently more than enough inventory to find a great house before rates go up again. Buyers – don’t forget about the $8,000 Tax Credit. You must close escrow by November 30th to qualify.
NATIONAL MARKET UPDATE
Spring is traditionally the home-buying season. True to course, existing home sales rose in April with strong buyer activity. From March to April, sales jumped up 2.9%. Who are the buyers? According to a National Association of Realtors’ survey, 60% are repeat buyers, entering the market to take advantage of the low interest rates, good inventory and more affordable prices. 40% are first-time buyers. First-time buyers as well as buyers who have rented for 3+ years also have the added incentive of an $8,000 tax credit offered by the federal government. Where are the sales? Regionally, home sales last month rose 3.5% in the West, 11.6% in the Northeast, 1.8% in the South, and slipped 2.0% in the Midwest. According to Lawrence Yun, Chief Economist for the NAR, buyers today are attracted to lower priced homes found in California, Nevada, and Florida. Yun forecasts that home sales in the second half of 2009 will be 10 – 20% higher than in 2008. Now may be your time to consider moving. Even if the selling price of your home is lower than expected, that price must be weighed against the opportunity to get an excellent price on your new home, plus the possibility of securing a better tax base. Let me know if you want to meet and talk. I am here to serve your real estate needs.