April 2011 Market Update Gradual and uneven progress in the housing market continues without government support. The market has shown remarkable improvement from the initial drop after the expiration of the home buyer tax credit this past July. Although higher-than-normal distressed sales skew the overall picture of home prices downward, inventory remains at pretax credit expiration levels. The rock-bottom interest rates of 2010 are likely to trend upward. As economists anticipate rates at or above 6% by the end of 2012, buyers are moving off the sidelines and into the market.
Home Sales in millions
Although home sales have fallen 9.6% compared to the previous month, they remain close to last year's levels, showing only a 2.8% decline. The unseasonably cold weather across much of the country during late January and February could have kept buyers indoors more so than normal. Gradual improvement with bumps along the way has long been the anticipated road to full recovery. In fact, home sales remain 26.4% above the low last July. As Lawrence Yun, chief economist of the National Association of Realtors, explains "month-to-month movements can be instructive, but in this uneven recovery, it's important to look at the long-term performance."
Home Price in thousands
Inventory- Month's Supply in months
Source: National Association of Realtors - housing data released Mar 21. Interest Rates Throughout the month, rates hovered in the 4.8%‒4.9% range. After rising above 5% for the first time in about ten months in early February, rates have come back below but are expected to follow an upward trend throughout the year. As overall economic recovery remains on track, rates will likely rise to keep inflation in check. Buyers wanting to capture the savings in monthly payments that a historically low interest rate affords are expected to take advantage of excellent buying conditions. This Month's Video Topics For Home Owners, Buyers & Sellers When first-time home buyers decide they are ready to buy, it is essential for them to begin the process by carefully assessing their values, wants, and needs-both for the short and for the long term. This is a critical step since consultation sessions normally start with the buyers' values. Afterward, buyers can explore their wants and needs, and once defined, determine actual criteria. A recent study shows how important the following home-buying factors were to buyers:
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Debra-This is a great detailed report. It will be great if this economy turns around and real estate starts flourishing.
Debra, I echo Sharon's comment. If the government can just manage to stay in business, and we can keep the economy going with vouchers, it should all be good!
Debra, you've done your usual great job with the market update and clearly establish yourself as the Professiona Realtor in your area.
Howdy and evening to you Debra
Debra, you sure have done a mighty fine Real Estate report to help folks. You sure did so folks can actually read and understand it.
Have a good one
Dale in New Hampshire
Debra, Nice job! Very well done! I hope that interest rates go up gradually and don't just shoot up! I am concerned what the ever increasing cost of petroleum is going to do to the overall economic outlook!
Love the economics in the report you have shared with us, Debra. I am seeing that the price of the home is the single most important factor for buyers as well.
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