Posts Tagged National Association of Realtors
While walking this morning I noticed the house two doors down had a notice on the door: This home is owned by Fannie Mae.
I know, it’s all over these days. I’m sure many of you have had a neighbor lose their home recently, also. It’s sad. He and his family have lived there since 2004. This house is very cute and was cared for and loved by my neighbor. It was built in 1938 and has been thoroughly remodeled and the landscaping updated.
Like so many others though, he’s not losing his home because he bought more house than he could afford – living there for seven years is a testament to that – but because due to the economy he is earning much less than he even last year and he can no longer afford to pay his bills.
And he’s not becoming a renter. He, his wife and kids are all moving-in with other family and sharing expenses.
I guess I’m from a different school of thought about this recession. I am not from the school of “real estate and mortgage fraud brought down the country”. I’m from the school of thought of “Yeah, there was some fraud in the real estate industry, but the biggest cause of the bubble burst was the economy already being on a downward spiral causing loss of jobs which lead to people losing their homes and cars and other things.”
I feel my position is supported by the fact that it wasn’t only the mortgage industry that saw late payments and defaults. All sectors of the credit industry did: homes, autos, credit cards, etc.
Why did this happen? Well I’m no economist, but I can guarantee that the people really responsible for the mess we’re in have shifted the blame to those without the money and the microphone and are walking away scott-free and richer than they were in 2007.
Most media outlets are reporting a drop in existing home sales in May due to the expiration of the first time home buyer tax credit. This story says they increased some. I think the truth is somewhere in between, home sales increased in some areas of the U.S. and decreased in others. The next few months will tell the whole story, but one thing is for certain, it’s a buyer’s market and interest rates are low. Really low. If you’re thinking about buying right now is the best time to do it. Home values have to increase and like the old adage: buy low, sell high. Buy now and in seven to ten years you’ll have quite a bit of equity in your home.
RISMEDIA, June 23, 2010—Existing-home sales remained at elevated levels in May on buyer response to the tax credit, characterized by stabilizing home prices and historically low mortgage interest rates, according to the National Association of Realtors. Gains in the West and South were offset by a decline in the Northeast; the Midwest was steady. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2% from an upwardly revised surge of 5.79 million units in April. May closings are 19.2% above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0% monthly gain.
Story continued here: May 2010 Shows a Continued Strong Pace for Existing-Home Sales | RISMedia.
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- Existing-Home Sales Rise 7.6% in April (wallstreetpit.com)
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The National Association of Realtors reported today that although nationally sales of existing homes is down 3.1%, the Western Region only fell 1.6%, about half of the national drop. Areas such as the Midwest saw the biggest drop in sales (6.0%). Some metro areas such as Las Vegas, Los Angeles, San Diego and Phoenix actually saw double digit increases as people took advantage of foreclosed homes and other bargains in those areas.
Average home prices dropped nationwide to 2004 levels, which depending on how you look at it is either good or bad — it’s good if you are looking at buying a home, maybe not so good right now if you are looking to sell or refinance and your equity position in the home is pretty skinny.
Overall though, home falling into the more affordable region and interest rates staying at historical low levels should help many people, especially first time home buyers, get into a new home with an affordable monthly payment. For first-time home buyers the $7,500 tax credit is still available which should make borrowing some cash for a down payment from family or others allot easier.
This is all especially good for Salt Lake City because as a whole, Utahn’s have above average credit worthiness so more borrowers in Utah qualify for homes than in other areas in the nation. Also, more homes are coming back into the range that the average Utahn can afford. So if you’re buying, or know someone thinking of buying a first home, now is a great time to do so. It really is.