Housing inventory is down to 6.4 for the month of October. That’s down from 7.6 in Sept. Note the high inventory was Jan, 2009 with the housing inventory at 21 months (meaning at the rate homes were selling and the number of homes on the market, it would take 21 months to sell all the inventory of houses). The current inventory numbers is largely due to pending and closed sales going up while new listings are down.
The time a home is on the market is down to 138 days from 158 a year ago. The price of homes sold is down 16.3% compared to a year ago in Oct. 2008. Median home prices dropped 14.5%.
Bottom line, short sales are priced low, take a long time to sell and typically sell for more than the list price, but are still sold for less than back in the real estate boom days. Home owners that don’t have to sell, are not selling right now.
The feds extended the $8000 first time buyer credit for all contracts to purchase entered by April 30, 2010 (must close by June 30, 2010), hoping to continue to stimulate the market.
The feds also passed a $6500 tax credit for repeat home buyers that previously owned their last primary residence for 5 out of the last 8 years and are buying a new primary residence. I think the fed is trying to get some of those home owners that don’t have to sell, to consider selling! For more info on the tax credit, check out: wahomeowners.com
Meanwhile, buyers must be prepared to jump through hoops with the lenders to get their home loan. The pendulum has swung from liberal to conservative when making home loans. Interest rates and home prices are incredible.
These residential statistics are based on monthly figures reported by RMLS™ of which I am a member.
By now you may have heard, the $8000 first time home buyer tax credit has been extended for offers made by April 30, 2010 (must close by June 30, 2010). They expanded the tax credit to home buyers purchasing a new primary home that owned their previous home 5 out of the last 8 years. This tax credit is $6500.
This is a great opportunity for those that qualify. Interest rates are low and inventories are pretty good! Let’s go shopping in SW Washington!
Housing sales are up in many areas, home prices and interest rates are low. The $8000 tax credit will expire soon (Nov 30, 2009) if the feds don’t extend it. (“Rumors” of an extension still exist.)
Is there a down side to all this for a buyer?
Many buyers are finding they must compete with multiple offers on low end properties. Short sales can take months to finalize, and in some cases, fall through at the last minute costing the buyer a lot of time. Foreclosed houses are typically sold “AS IS” and need repairs that disqualify them from federally backed mortgages (FHA, VA), making them “cash only” homes. Even if an offer is moving forward, appraisals have been known to fall short of sales prices causing the sale to fall through.
How can a buyer compete with these obstacles?
Study the market in the area of the home you want to buy and make a strong offer (as opposed to a low ball offer) on the home you want to increase the chance of having your offer accepted on a low priced home.
What’s on the horizon for home buying?
More change will happen in 2010 when new mortgage regulations phase into effect. See: http://www.federalreserve.gov/newsevents/press/bcreg/20080714a.htm
Read more: http://rismedia.com/2009-10-15/8000-tax-credits-hoops-frustrate-house-hunters/#ixzz0U72HutVH
Read more: http://rismedia.com/2009-10-15/8000-tax-credits-hoops-frustrate-house-hunters/#ixzz0U6wboFVz
Read more: http://rismedia.com/2009-10-15/8000-tax-credits-hoops-frustrate-house-hunters/#ixzz0U72HutVH
Read more: http://rismedia.com/2009-10-15/8000-tax-credits-hoops-frustrate-house-hunters/#ixzz0U72HutV
Our listing inventory is at 8 months. That’s up from July’s 7.3, but look at our pending sales! Pending sales rose to 24.9% compared to a year ago. (Our inventory includes all those pending sales.) Year to date our pending sales average is up 10.9%. Closed sales increased 11.1% while new listing dropped 21.4%. Average Market Time (how long it takes to sell a house) for August was 158 days, year to date is 162 days.
There are more stats available, but I don’t want to boggle you with all the numbers. If you have questions, just post a comment and I’ll respond as quickly as I can.
These residential statistics are based on monthly figures reported by RMLS™ of which I am a member.
