Existing Home Sales Approach Bull Market Territory
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Written on January 24, 2012 by FHA 203K Network Bloggers
The housing market finished 2011 with strength, and is carrying measurable momentum into 2012.
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According to data from the National Association of REALTORS®, on a seasonally-adjusted, annualized basis, December’s Existing Home Sales climbed by 120,00 units overall from the month prior on its way to an 11-month high.
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An “existing home” is a home that’s been previously occupied; that cannot be considered new construction.
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After 4.61 million existing homes were sold in December, there are now just 2.38 million homes for sale nationwide. The last time the national home supply was this sparse was March 2005.
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At today’s sales pace, the complete, national home inventory would be exhausted in 6.2 months — the fastest pace since before the recession. A 6.0-month supply is believed to represent a market in balance. Your just 0.2 month away from home price stabilization. If you’ve been thinking about purchasing a home contact a Realtor before prices and interest rate go up.
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The December Existing Home Sales report contained noteworthy foreclosure and short sale statistics, too :
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Foreclosures sold at an average discount of 22% to market value
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Short sales sold at an average discount of 13% to market value
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Together, foreclosures and short sales accounted for 32% of all home sales
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Clearly, “distressed homes” remain a large part of the U.S. housing market.
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Furthermore, in its report, the real estate trade group also noted that one-third of homes under contract to sell nationwide succumbed to contract failure last month. That’s up from 9% one year ago. Contact a Mortgage Planner at First Guarany Mortgage Corporation and avoid a statistic. We work hard to place home buyers in solid FHA and FNMA fixed rate mortgages, even if your FICO Scores are as low as 580.
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Contract failure occurs for a multitude of reasons.
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Most notably homes appraising for less than the purchase price, so work with one of the Realtors on our fb Home Buyer’s Educational Page who will preform in-depth market analysis of home values on the home of your choice before presenting an offer.
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Buyer’s failure to achieve a mortgage approval, often due to High FICO score requirements. FGMC looks at more than just your FICO score and approves loan with FICO scores as low as 580.
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Insurmountable home inspection issues ~ If your dream home is distressed we offer the FHA 203K and FNMA HomePath Renovation Loan to correct health and safety issues, as well as upgrading a home with your personal taste in mind. Void high interest rated credit cards to improve your home and benefit from the tax advantage by including the cost to renovate into your mortgage. Ask your Mortgage Planner how.
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December’s high failure rate underscores the importance of getting pre-approved by a lender who cares about you and committed to “Rebuild the Dream”.
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For today’s home buyer, December’s Existing Home Sales figures may be construed as a “buy signal”. Home supplies are dropping and buyer demand is rising. This is the basic recipe for higher home prices ahead.
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The best values of the year may be the ones secured this winter.
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Great Reading for Home Buyers to.
Large Power Point Presentations MAY need to be downloaded directly from Slidehare
SHORT SALES & FHA 203K OR FNMA HOMESTYLE
FHA 203K ~ A DISTRESSED HOME MARKETING TOOL FOR REALTORS
FANNIE MAE HOMESTYLE ~ A DISTRESSED HOME MARKETING TOOL FOR REALTORS
Well it does FEEL like things are turning and that is huge right? The perception and feeling among people to create optimism. Holding my breath for it. Still more foreclosures on horizon blah blah blah.
Looks like you are in an interesting market there in New Orleans. How are things there and what are you optimistic about?
Mostly because we’ve zeroed in on the renovation market. Down here I do a lot of 203K and HomePath loans. On average our borrowers are making down payments of 5K to 7K and after repairs seeing at least 30 to 40K in appreciation. Just closed a loan for a young couple who bought for 89K, made 40K in improvements with a final value of 220K. Not bad! You can’t do that everywhere but many states are prime for equity appreciation when you look at foreclosed properties.