Housing Recovery
December 15, 2009
The recovery in the real estate market is still moving forward with a huge 7.4% in home sales in November via information from the National Association of REALTORS.
At this time, sales are up 44% over where they were a year ago and this does include detached single-family homes, townhouses, condominiums, and cooperatives.
The sales are up not only here and the Tulsa real estate market but they are up all over the US and in every region. The Northeast say a 6.6% increase, the Midwest an 8.4% increase, the West an 11% increase, and in the South a 5% increase.
Sales were higher in all price ranges for the second month in a row. Over the last year, we did not see luxury homes or higher priced homes selling, but now they are once again getting new owners.
Homes that have sat on the market have decreased and unsold inventories are 16% below last years.
Chief economist of the National Association of Realtors Lawrence Yun, explained that the rush in home sales is due to the cut off of November 30 for the $8,000 first time buyer credit. The deadline was extended until June 30th for first time buyers until with an added credit repeat purchasers.
The president of the National Association of Realtors, Vicki Cox Golder, stated the combination of tax credits, low mortgage rates, and low prices has been an attractive environment for home buyers across the nation.
She stated, “It really doesn’t get any better for buyers,” if they have “secure jobs and long-term ownership plans.”
The forecast by Fannie Mae for 2010 suggests that sales of existing homes in 2010 will increase another 10% and new homes can expect an increase of 26%. Like many others forecasting in the housing market, Fannie Mae sees mortgage rates rising but not so high that buyers will not purchase.
The Mortgage Bankers Association forecasts 30-year fixed rates to exceed 5.2% in the coming months, which is up from about 5% a couple of weeks back.
Federal Reserve chairman Ben Bernanke believes higher mortgage rates are inevitable and Bernanke refinanced out of an adjustable-rate loan on his Washington D.C. home and into a more secure 30 year fixed rate around 5 percent.
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