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Bright Spots in Recovering Housing Market

Real Estate Agent with RE/MAX Ultimate 2003004922

Many real estate agents will look back to 2009 as a year of stabilization and recovery. A number of indicators, from rises in new and used home sales compared to periods one year ago and continued growth in sales in many markets, point to market recovery. Many markets are reflecting pricing above previous low points and others will join them this year.

The National Association of Realtors (NAR) recently reported sales of existing homes showed another gain in May 2009, representing the first back-to-back monthly gain since September 2005. Pending home sales were up for the three-month period March through May 2009, when compared to the each of the year-earlier months. 1

Markets such as the Chicago metro area, Florida and California have all shown dramatic gains in recent home sales. In California, the for-sale inventory of homes dropped by more than half from May 2008 to May 2009, according to the latest California Association of Realtors (CAR) report on May home sales and prices.

CAR said home sales increased 35.2 percent in May in California compared with the same period a year ago. The California Association of Realtors (CAR) cited the alignment of favorable home prices, historically low mortgage rates and the first-time homebuyer's tax credit, conditions which may not align again for many years.2

While many reports show home prices are still down from their points in the year-earlier period, the data suggests the decline in home prices appears to be moderating. Helping fuel the recovery are new mortgage programs, record-low low interest rates and government initiatives such as the first-time homebuyer's tax credit.

"While one month's data cannot determine if a turnaround has begun; it seems that some stabilization may be appearing in some of the regions."3


1SOURCE: http://www.realtor.org/press_room/news_releases/2009/06/phs_up
2SOURCE: http://www.car.org/newsstand/newsreleases/maysalesandpricereport/
3SOURCE: http://finance.yahoo.com/news/The-Pace-of-Home-Price-prnews-1506714905.html?x=0&.v=1

Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

Finally, some good news for the housing market it is a little change but recovery usually starts a little at a time.

Jul 31, 2010 04:17 AM