8.27.09 Home Prices Rising

There was a 2.9% increase in national home prices from the 2nd quarter of 2009 compared with the 1st quarter, according to the Case-Shiller index. Home sales are being helped due to the government economic stimulus effort, but also due to home prices reaching affordable levels for many buyers. Many buyers are taking action in recent months to try to purchase a home before prices rebound and begin to go up again. There is good momentum in the market right now. However, there could still be problems with a full housing recovery due to the problem of foreclosures, a high unemployment rate, and an influx of bank-owned properties into the market which would increase inventory and put a damper on increasing home prices.

8.21.09 Home Sales Up, So Are Foreclosures

Two recent news articles indicate that while figures on home sales continue to grow, there are an increasing number of American homeowners who are underwater on their mortgages. The number of American homeowners with a mortgage who are behind in their mortgage payments or in foreclosure is 13%. One analyst has predicted that by 2011 nearly half of American homeowners will be underwater on their mortgages, in other words they will owe more on their house than their house is currently worth. This situation is going to exacerbate the problem of foreclosures.
The most recent report on home resales showed a 7.2% increase, the largest monthly increase in at least 10 years. First-time homebuyers continue to create movement in the marketplace as they hurry to close a deal before the November 30th deadline for the first-time homebuyers tax credit.

8.4.09 Pending Home Sales Index Rises

For the fifth straight month, the Pending Home Sales Index created by the National Association of Realtors showed a national increase in June. This index measures signed contracts for previously owned homes. Low prices, good interest rates and the first-time homebuyer tax credit are helping sales. Regionally, the West and South are showing the strongest gains in sales activity. Read more here.