The latest reporty from the National Association of Realtors (NAR) continues to show positive news similar to that we have been seeing in our local area since last October. June existing home sales rose for the third month nationally (and for the sixth month locally in the entry price segment). Pending home sales results will be released next week but all indications are that these will also have risen (for the 3rd month nationally and for the 6th month locally). Existing home sales nationally are now running at a 4.85M unit per year rate, the highest since October 2008. Yet they remain 10% lower than in 1999 just before the real estate market took off.
One potential negative that could impact this trend of increasing sales is the pending end of the first-time home buyer tax credit which expires Nov. 30 , 2009. This credit, the lowest fixed rate mortgage rates in history, and the availability of decent homes priced under $430,000 have all led to the entry level home sales boom we have been seeing since October. Unless the Federal Government extends this tax credit, one strong impetus will be lost.
Locally we are in the midst of a "buyer boom" with many agents and brokerages reporting high buyer interest at open homes, walk-ins and inquiries on listings. Homes in the mid-price tier ($400,000 to $800,000) are moving and inventory is down markedly. Mortage rates on loans to $729,000 are also at historical lows. Buyers sense this trend, are getting off the fence and starting to buy! Now if we could just open up the upper tier above $1M.......
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment