home sales

Home prices in most major metropolitan areas are starting to stabilize. A report from the National Association of Realtors (NAR) showed that 78 markets in the U.S. experienced price gains in the fourth quarter of 2010 over the previous year. Existing-home sales were up as well, rising 15.4% to an annual rate of 4.8 million from 4.16 million in the third quarter of 2010.

This wasn’t a total improvement over 2009 — prices are up 0.2%, however the fourth quarter of that year saw an annual rate of 5.97 million sales, largely due to the first-time home buyer tax credit — but it’s certainly progress.

Here’s what this means for the average consumer:

A Slow Improvement
These are not great gains, and in fact, only half of the markets saw improvements, which means half did not. But it does mean we’re inching in the right direction, and we should continue to see more growth as the year goes on.

A Heads Up for Buyers
If you’re in the market for a home, you need to be paying attention to these numbers. “If I were thinking about buying, I would want to have some perspective about where prices were headed. If they’re starting to accelerate, you might want to act. If there’s been a decline, you have to realize there are opportunities out there to shop and find a real bargain,” says Jed Smith, the managing director of quantitative research at NAR. Chasing the bottom is never a good idea — no one knows when it will hit– but if you’ve been holding out and prices have shown signs of increasing in your area, you probably want to get serious.

Another Chance for Sellers
If you’ve been waiting to put your home on the market — or you had it on, but took it off because it just wasn’t moving — we may be inching toward a time when you can put it up for sale and recoup at least some of the value it lost during the recession.

It’s Not a Store-Wide Sale
Real estate is extremely local, not just by state or city but by neighborhood, and in some cases, even by block. That means you really have to track your immediate area if you want to follow prices and sales data carefully. You can find out hyper-local information by contacting us, or if you’re not in our service area, from a local real estate agent in your area, one of the perks of working with one to find a home. But this national data from NAR tells you one thing: You’re not going to find bargains in every market. “Everyone thinks everything is on sale. It really isn’t, and if you’re going to make a realistic offer, you need to take into account whether prices are going up rapidly, stabilizing, or going down in your specific area. If prices are going up, a low-ball offer isn’t going to work. If they aren’t, you need to recognize that it might be a good time to buy a house,” says Smith.

The Economy Is Improving
The jobs situation, in particular, is looking better. We’re adding jobs slowly — too slowly for the kind of rebound we need — but these NAR figures are promising. The unemployment rate in any given area tends to correlate very closely with home prices, explains Smith. “When the economy is generating jobs, and there are areas where jobs are being generated, home prices in those areas tend to be headed up. When the economy is holding constant, prices tend to be relatively stable. And where there are job problems, prices may be weak or headed down in some cases.”

In NAR’s release about these new numbers, Lawrence Yun, the association’s chief economist, says the housing recovery will mean faster job growth. He projects that 150,000 to 200,000 jobs will be added to the economy in 2011 from an anticipated 300,000 additional home sales.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

The number of contracts signed for purchases of previously owned homes rose again in December, according to data released recently by the National Association of Realtors (NAR).

The trade group’s pending home sales index increased 2.0 percent compared to its November reading, which was revised downward.

The index is based on contracts signed in December, as opposed to closings. NAR says this forward-looking indicator typically signals where existing-home sales levels should be within one or two months.

It marks the third consecutive month NAR’s gauge of home sales to come has climbed higher. December’s gain was larger than analysts were forecasting.

Lawrence Yen, NAR’s chief economist, says “Modest gains in the labor market and the improving economy are creating a more favorable backdrop for buyers, allowing them to take advantage of excellent housing affordability conditions.”

According to Yun, mortgage rates should rise only modestly in the months ahead, so conditions should remain favorable for buyers with good credit. He also says stable home prices should continue into 2011 as long as there is sufficient demand to absorb inventory.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Driven by continued high levels of unemployment across many parts of the country, data from RealtyTrac shows foreclosure activity increased in many cities during last year, despite the fact that many lenders halted their foreclosure process for part of the year.

According to the report, foreclosures increased in 149 of the 206 largest cities in the country, with Houston and Seattle showing the sharpest increase from 2009 to 2010. Las Vegas continued to have the highest foreclosure rate in the country during 2010, even though activity there, along with each of the 10 hardest-hit cities, showed declines compared to 2009.

“Foreclosure floodwaters receded somewhat in 2010 in the nation’s hardest-hit housing markets,” according to James J. Saccacio, chief executive officer of RealtyTrac. “Even so, foreclosure levels remained five to 10 times higher than historic norms in most of those hard-hit markets.”

Nationwide last year, more than 2.8 million properties received foreclosure filings, accounting for roughly 2.2 percent of all homes.

However, the number of foreclosed properties may also provide opportunities for many buyers. According to the National Association of Realtors, distressed homes made up 36 percent of all existing-home sales in December.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Low mortgage rates and home prices helped fuel a sharp increase in home sales during the month of December, according to the National Association of Realtors.

The group says existing-home sales during the month took place at an annual rate of 5.28 million, which was up more than 12 percent from the previous month as analysts said the report was a good way to end the year.

“The December pace is near the volume we’re expecting for 2011, so the market is getting much closer to an adequate, sustainable level,” said Lawrence Yun, NAR chief economist. “The recovery will likely continue as job growth gains momentum and rising rents encourage more renters into ownership while exceptional affordability conditions remain.”

The rising pace of sales also helped drive down the nation’s housing inventory, which has been inflated for several months, dropping it from 9.5 months to 8.1 months. A balanced market, according to the group, has roughly a 6-month supply.

One of the biggest reasons for higher sales is that home prices have fallen significantly from the peak levels from the housing boom. According to the Case-Shiller home price index, home prices in October were roughly the same as they were in mid-2003.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

The number of price-reduced homes on the market in December 2010 fell by 7.7 percent from the previous month, according to a survey of 26 major U.S. markets conducted by the national real estate brokerage ZipRealty.

Despite the month-to-month decline, the company says the number of homes with a reduced asking price remained high compared to a year earlier, rising 23.4 percent from December 2009.

ZipRealty’s report shows that in nine of the 26 markets included in its study, more than half of the homes for sale in December 2010 included at least one price reduction.

The report also found that in the markets surveyed, the median list price in December was down 3.9 percent at

$225,434, compared to November when the median list price was over $9,000 higher at $234,484.

According to ZipRealty’s 26-market analysis, the percentage of total housing inventory that has experienced at least one price reduction dropped for the first time in months, decreasing to 47.2 percent in December. That’s down from 48.4 percent in November and 48.3 percent in October of 2010.

December is traditionally a slow month for home sales, and this could be a contributing factor to the decline over the previous two months in inventory as well as the drop in median list price.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.