Real Estate Information

Home Prices Rising in More Areas, First Quarter Sales Up From a Year Ago

A growing number of areas are experiencing price gains from a year ago, while most states have seen healthy gains in home sales from the first quarter of 2009, according to the latest survey by the National Association of REALTORS®.

In the first quarter, 91 out of 152 metropolitan statistical areas¹ showed higher median existing single-family home prices in comparison with the first quarter of 2009, including 29 with double-digit increases; three were unchanged and 58 metros had price declines. In the fourth quarter 67 areas reported gains and 123 were down, while only 30 MSAs in third quarter of 2009 showed annual price increases.

The national median existing single-family price was fairly flat at $166,100, down 0.7 percent from the first quarter 2009 price of $167,300. The median is where half sold for more and half sold for less. Distressed homes, which typically are discounted by 15 percent relative to traditional homes, accounted for 36 percent of first quarter sales. http://www.realtor.org/press_room/news_releases/2010/05/metro_rise

North Carolina is the only Mid-Atlantic state on the top 10 high-inbound list, with a rate of 55.4%. From 2008 to 2009, the state dropped from No. 3 to No. 10. According to Forbes, Raleigh and Charlotte remain two of the most popular cities for relocation.

Asheville and Waynesville area ranks high on the list to live as well. As real estate home sales continue to increase home prices are still at an all time low. Waynesville home sales seem to be following the national averages.

The general feeling is the increase in home sales will continue and as inventor decreases prices will stabilize and will start to increase. There has never been a better time to purchase home. http://bit.ly/di3LbA

New Home Sales Jump in March
Sales of new homes rose 27 percent in March compared to February, the U.S. Commerce Department announced Friday. It was the largest monthly increase since April 1963, when sales jumped 31.2 percent.

In addition, the National Association of REALTORS® reported last week that sales of previously owned homes rose 6.8 percent.

Economists attribute the figures to buyers taking advantage of the $8,000 tax credit scheduled to expire at the end of this month.

“In simple terms, housing is a bargain again, and buyers are responding,” Michael D. Larson, a real estate and interest rate analyst at Weiss Research, wrote in a research note. “That is unambiguously good news for the market going forward.” http://bit.ly/bDfOZg

It seems the government is doing everything they can to help the consumer with their homes when it comes to Short Sale and Foreclosures. Starting in July Fannie Mae makes it easier for some struggling homeowners to buy houses in the future if they avoid foreclosure in the present.

Under rules released this month that will take effect in July, some troubled borrowers who give up their homes by voluntarily transferring ownership through a "deed in lieu of foreclosure" or by completing a short sale, where a home is sold for less than the amount owed, will be eligible in two years to apply for a new mortgage backed by Fannie. http://bit.ly/d7i0mK

Tougher lending standards, mortgage modification efforts and a more stable job market, economists say have contributed to the first decline in the delinquency rate since the first quarter of 2006. The percentage of delinquent mortgages declined to 6.57 percent in the first quarter from 6.60 in the last quarter of 2009, according to Equifax and Moody’s Economy.com.

I believe the biggest reason is because banks are working with their Clients trying to stay out of ownership or foreclosure. The new Short Sale Rules that became effective April 5^th is a good indication that lenders want to work with home owners. My understanding is over 95% of the mortgage lenders have signed up. http://bit.ly/aikvkj

Over the last several months housing prices fell slightly, dipping 0.4 percent from December on a non-seasonally adjusted basis. However for the remainder of this year I wonder what the high foreclosure rate will do to home prices. Most likely if you live in neighborhoods that have a high rate of foreclosures there is a good chance it will. http://bit.ly/cWbWCo

Pending Home Sales Show Healthy Gain, Hint at Spring Surge
Pending home sales rose in February, potentially signaling a second surge of home sales in response to the homebuyer tax credit, according to the National Association of REALTORS®.
http://www.realtor.org/press_room/news_releases/2010/04/phs_gain

Tax time, doesn't have to be painfully, especially if you bought, sold or owned a home in 2009. Obama's stimulus package promised to reverse that tradition, and instead write checks to buyers, sellers and even those who lost their home through foreclosure. http://bit.ly/bfkrWx

The N.C. economy should grow 3.5 percent in 2010, the first year of growth following two years of decline. Seven of the state’s 11 economic sectors are forecast to see output increases during the year. The sectors with the strongest growth prospects are construction, with a projected real increase of 7.2 percent; services, up 7.1 percent; finance, insurance and real estate, with a gain of 5.2 percent; government, up 4.8 percent; and retail trade, with a projected real increase of 4 percent. http://bit.ly/aH3rgM

If FHA raises the down payment on FHA loans I believe this would be a big mistake. I like some of their other ideas but frankly increasing anything right now would be a mistake.

As Congress considers various ways to put FHA on sounder financial footing, FHA Commissioner David Stevens warned that now is not the time to raise the down payment requirement on a Federal Housing Administration loan.

Congress has been considering various ways to put FHA on a sounder financial footing. Besides increasing the down payment requirement, another suggestion under discussion is raising the upfront mortgage insurance premium to 2.25 percent of the loan amount, up from 1.75 percent currently.
http://bit.ly/98BHUL