In real estate news the number of short sales has been going up. Short sale just means when an owner owes more on the home than it’s worth and the lender is willing to accept the difference between the sales price and the loan balance, thus allowing the homeowner and the lender to avoid the costly foreclosure process. INMAN news reported that nearly 16% of all sales last month were short sales.
The unemployment numbers remain at 9.7% and the number of people filing for unemployment was down. The Fed Chairman Ben S. Bernanke told Congress that the Central Bank did not intend to start raising short term interest rates anytime soon because it would affect the economic recovery at this time.
According to reports by HAR (Houston Association of Realtors) January 2010 was a “mixed bag of readings.” January sales of single family homes slid 12.3% compared to the same time in January 2009. It is expected for sales to go up due to the tax credit still being offered but ending April 30th. This may sound like a broken record but interest rates are still very attractive. Don’t get spoiled because eventually rates will have to start going up or we will have massive inflation. I hope to see sales rise as we approached the traditional spring house buying season.
The current inventory of homes for sales is up 6.4% higher than last year which tells is that we were going to have more competition. It could also mean a confidence in home sellers, but keep in mind that more foreclosures are coming on to the market.
As always, keep your homes looking as good as possible, let’s continue to be competitive in the market and I strongly believe we will get it sold. Thanks again for your confidence and trust in the Rick Martinez team.
Regards,
Rick Martinez
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