The world’s premier site for all things Real Estate.
It’s always free to list, search, and blog!
It’s always free to list, search, and blog!
Market Update
Posted August 23, 2010, 3:34 PM by guidroz627
Market Update
Housing activity continues to remain above year-ago levels despite some
setbacks resulting from the now-expired tax credit. Improved stability in home
prices with similar levels of distressed properties seen last year offers a
hopeful sign the market is holding its ground. However, the economy still has a
considerable way to go to achieve its full recovery.
Consumers are saving more and being picky about how they spend their money.
While a higher savings rate means less spending in the near term, this is a
positive sign that households are taking control of their finances to build some
cushion that can be used to pay down debt and/or support future spending.
Existing home sales marked the twelfth consecutive month of year-over-year
increase in June. On a monthly basis, sales activity eased 5.1% from May. The
moderation in home sales reflects “understandable swings as buyers responded to
the tax credits,” according to Lawrence Yun, NAR chief economist. He anticipates
such impact to show up in the next two months.
June’s median home price increased for the fourth consecutive month. Distressed
homes, accounting for 32% of sales last month, continued holding home prices at
highly affordable levels for the time being. While distressed sales hovered
around the same level as a year ago, the gain in home prices is pointing to a
sustained stability in the making.
Interest Rates
Mortgage rates set a new record low in July as consumer confidence softened and
unemployment remained elevated. This presents a great opportunity for buyers and
investors. Coupled with lowered home prices and a robust rental market,
investors are finding their way to cash-flow opportunities. As recovery gains
deeper roots, rates will need to rise to keep inflation in check.
Posted August 23, 2010, 3:34 PM by guidroz627
Market Update
Housing activity continues to remain above year-ago levels despite some
setbacks resulting from the now-expired tax credit. Improved stability in home
prices with similar levels of distressed properties seen last year offers a
hopeful sign the market is holding its ground. However, the economy still has a
considerable way to go to achieve its full recovery.
Consumers are saving more and being picky about how they spend their money.
While a higher savings rate means less spending in the near term, this is a
positive sign that households are taking control of their finances to build some
cushion that can be used to pay down debt and/or support future spending.
Existing home sales marked the twelfth consecutive month of year-over-year
increase in June. On a monthly basis, sales activity eased 5.1% from May. The
moderation in home sales reflects “understandable swings as buyers responded to
the tax credits,” according to Lawrence Yun, NAR chief economist. He anticipates
such impact to show up in the next two months.
June’s median home price increased for the fourth consecutive month. Distressed
homes, accounting for 32% of sales last month, continued holding home prices at
highly affordable levels for the time being. While distressed sales hovered
around the same level as a year ago, the gain in home prices is pointing to a
sustained stability in the making.
Interest Rates
Mortgage rates set a new record low in July as consumer confidence softened and
unemployment remained elevated. This presents a great opportunity for buyers and
investors. Coupled with lowered home prices and a robust rental market,
investors are finding their way to cash-flow opportunities. As recovery gains
deeper roots, rates will need to rise to keep inflation in check.