Sales are increasing, inventories are dropping, and money is flowing into real estate. Compared with a year earlier, March pending home sales climbed 10.8 percent after a 14.9 percent surge in February. The bottom is in for real estate prices.
Archive for April, 2012
Foreclosures and short sales accounted for 47.7 percent of sales, in the first three months of 2012 according to Campbell/Inside Mortgage Finance. That’s the 25th month in a row that distressed sales have topped 40 percent of the market. The supply of homes for sale is low, so low in many areas we are seeing multiple offers and offers higher than the asking price. We expect a ‘pop’ is home prices in the next 12 months.
The value is in the physical house, not the driveway. Take the main photo from the oppisite side of the driveway, that way buyers see the big house and small driveway. Also, the more photos the better. At FSBO.com you can add unlimited photos.
Banks use credit scores to determine their risk and the interest rate they charge for your mortgage. The better the score, the lower the risk and interest rate. It would seem that the bigger the down payment the lower the risk, so you would receive a lower interest rate. Not so! Whether you put down 20% or 50% the interest rate is the same, even though the risk to the bank is lower. Just another example of the banks not getting it.
The latest data; a) Existing home sales were down in March but continue to outpace year-ago levels b) home prices are showing further signs of stabilizing c) “Another year from now if prices stay flat and rents rise another 4, 5 or 6%, then the decision to rent or buy will be firmly in favor of buying rather than renting” Mark Zandi, chief economist of Moody’s Analytics
The Commerce Dept reported this week that builders broke ground at a seasonally adjusted annual pace of 654,000 homes last month. That’s down 5.8% from February. But builders requested the most permits for future projects in 3½ years, suggesting that many see the housing market improving..
In February, foreclosure starts fell 15.2 percent month-to-month and foreclosure sales, the final stage of the process fell 19 percent month-to-month, according to a new report from Lender Processing Services. Efforts by banks to modify or short-sale properties have increased significantly. This trend should continue, thus reducing inventory. Refer to our blog on April 2nd
FSBO.com has been saying for over two years, to stabilize the real estate market, investors need to buy and fix up the vacant/run down properties owned by banks and FNMA. Now, they are doing just that. Here is another article outlining their plan: Investors
Most markets in the United States have seen the bottom of home prices and will see increases over the next several years based on:
1: inventory levels are low and getting lower
2: bank/govt owned property are getting multiple offers from investors
3: foreign buyers continue to buy and want more
4: family formation will continue to increase
5: 20-30 yr olds are moving out of their parents house
6: interest rates are low, but moving up.
7. rising rents will move renters into buyers
8. credit scores are improving for those with credit score under 700
FSBO.com has been waiting five years to make this prediction and we feel the time has come.