Inked Home Sales Continue To Increase

Multiple home price indexes have revealed a welcome uptick in property values in recent weeks. Following suit, pending home sales are up for the fifth consecutive month, the first time in six years for such a streak.

According to a report released by the National Association of Realtors (NAR) this week, expected home sales are up 3.6 percent. This projection is based on contracts signed in June, keeping in mind that it can take as long as two months to close on a home after signing a contract.

On a regional basis, homebuyers in the South appear to be getting back into the game the quickest – the Pending Sales Index there jumped 7.1 percent in June. In the West, the index rose 2.9 percent. In the Northeast, it gained 0.4 percent, and in Midwest part of the country, pending sales are up 0.8 percent.

Lawrence Yun, NAR’s chief economist, credits a combination of positive market factors for fueling the gains. “Historically-low mortgage interest rates, affordable home prices, and large selection are encouraging buyers who’ve been on the sidelines. Activity has been consistently much stronger for lower priced homes,” Yun explained.

“A monthly rise in home prices and somewhat higher mortgage interest rates led to a modest decline in affordability in June, but it was still the sixth highest index on record, dating back to 1970,” Yun explained. “Because housing is so affordable in today’s market, job security and the first-time buyer tax credit are bigger factors in influencing home sales.”

With the window for the $8,000 federal tax credit shrinking, first-time buyers will need to act quickly to take advantage. Taking into account the lag time between contract signing and closing, first-time homebuyers have until November 30 to finalize the deal in order to get the refund.

Yun says he expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. “It appears home sales are on a sounder footing and inventory is gradually being absorbed,” he added.

source: DS News

Forclosure Market Represent Half of 1stQ Purchases

While most of the real estate world is still reeling from sunken property values and the effects of the housing bubble fallout, one type of property out there is in hot demand. New statistics released by Los Angeles-based Foreclosure-Support show that during the first quarter of 2009, one out of every two home sales in the nation was a foreclosure or short sale property. Experts with the company say that this data is indicative of a trend that has been growing among homebuyers for the past two years.

Steve Siefken, business analyst for Foreclosure-Support, said, “After the market crashed no one was buying anything. But once foreclosures started to come onto the market in bigger and bigger numbers, I think people began to take notice and thought, ‘Hey, there’s a potential for deals here.’”

Foreclosed homes often sell for extremely large discounts, especially in areas where there are a lot of foreclosures available. Foreclosure-Support says depending on the location and condition of the property, a foreclosure now goes for anywhere from 10 percent to 60 percent off the price it was selling for only a year ago. And even though property values across the country have plummeted, the company says investors are now snatching up distressed properties in anticipation of the eventual turn-around.

Siefken explained, “At first, it was mostly the professionals at foreclosure auction, just like always. Then we got reports of certain sales in the high-demand areas like Texas, California – they were seeing record turnouts at these sales. But the interesting thing was that even though there was high competition, these properties were still going for way less than what was originally paid for them, so the value’s still there.”

High-demand areas like Los Angeles, Miami, and Charlotte, North Carolina, all report significant increases in foreclosure sale attendance. Foreclosure-Support says more foreclosures actually signify smart investment opportunities for savvy buyers.

Foreclosure-Support specializes in providing daily updates of foreclosure listings and foreclosure information from across the nation. With over a decade of experience in the foreclosure marketplace, Foreclosure-Support says its team helps buyers and investors get a detailed perspective on the foreclosure marketplace so they can make informed and profitable purchases.

source: DS News