Happy New Year?
As we approach the end of 2009, things seem to be looking more promising in terms of the real estate industry. The California Association of Realtors just released a report with the following “Quick Facts”:
* Existing, single-family home sales increased 4.7 percent in November to a seasonally adjusted rate of 536,720 units on an annualized basis.
* The statewide median price of an existing single-family home increased 2.4 percent in November to $304,520 compared with October 2009.
* C.A.R.’s Unsold Inventory Index fell to 4.5 months in November, compared with 7.1 months in November 2008.
According to the C.A.R.’s President Steve Goddard: “First-time buyers continued to drive the market in November, as many opened escrow to take advantage of the federal tax credit prior to its original Nov. 30 expiration. The extension and expansion of the tax credit until April 30, 2010, along with low interest rates, should continue to positively impact the market in coming months. Efforts by lenders and the government to assist homeowners at risk of foreclosure have led to fewer homes available for sale, and an increase in the state’s median home price. California’s median home price increased year over year in November for the first time since August 2007.”
For the full article, see: http://www.car.org/newsstand/newsreleases/novsalesandprice/
Along with others, I’m hopeful for the new year and have definitely seen an increase in interest among potential home buyers. At the same time, however, I have to be a little hesitant in painting too rosy of a picture in the year to come. In the past month alone, I’ve spoken with three families who are looking at the prospect of losing their homes in the near future due to either loss of employment, a resetting of their loans to higher interest rates and higher payments, the fact that their property is not worth the remaining balance of the loan, or a combination of these factors. Loan modification is not a viable option for them, nor will any of the proposed or newly passed housing programs be of any help. All three are actually continuing to make their payments on ethical principles, even if this means eating into their savings. And I’m sure that their cases are not isolated ones.
So while I hope for the best and want to believe that the economy is taking a turn for the better, it seems to me that we’re still not out of the woods yet. I’d be interested to hear from other agents and homeowners as to what they’re seeing on a practical level. In the meantime, here’s to hoping for a truly Happy New Year to all of us, and especially to those in difficult situations.
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Jean,
Thanks for your post.
Yes, there is optimism in the air!
Most financial indications are pointing to an up economy which is good in one respect but watch out for inflation, which could be a downside. Mortage rates will increase if that happens so maybe the smart money is seeing a sweet spot now and seizing the opportunities out there.
Happy New Year!
Brian Boisson