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Market updates
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Written by Administrator
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Friday, 03 July 2009 |
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As a follow up to the most recent blog post: Pending home sales were up again for the fourth month in a row. The last time that happened was right at the beginning of the last real estate boom. I am not implying that that is what this means...just that it is a good thing.
Locally there has been a slight drop in pending sales in week, but I am sure that happens at the end of each month since that is when most closings are scheduled. I anticipate that they will nudge upward as we get further into the month. I will let you know if that happens.
Below is a AP article about this very topic.
Have a Happy and Safe Fourth of July!!!!
Ralph
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Market updates
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Written by Administrator
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Monday, 22 June 2009 |
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An important indicator of a real estate recovery is an upward trend of under contract or pending sales.
I can remember watching the pending sales hover around 77 units for months on end during the winter and spring of 2008.
Then in the fall of 2008 there was a jump to around 90 units under contract that was sustained for months.
Over the past few weeks that number has stayed around 105 to 108. There are dramatic increases.
I track four areas every day. Those are Avalon and Avalon Manor, Stone Harbor and Stone Harbor Manor, Wildwood Crest and North Wildwood.
This little microcosm is showing us a positive trend in seashore real estate. Couple this trend with the increased telephone and internet traffic and I am optimistic about what this summer season will bring.
Today the pending number is 116.
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Market updates
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Written by Administrator
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Friday, 12 June 2009 |
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The recent rise in interest rates is a good news, bad news event. Rates have jumped almost a percentage point in the past couple of weeks which is not completely bad news for prospective home buyers. The reasons that interest rates are low are because the economy is in trouble and there is not confidence that it will improve in the near future. When interest rates rise that is one indicator that the economy is on the mend. Financial institutions feel confident that they can get a way with increases in rates because there is a demand for the money and people are willing to go out on a limb and borrow again.
Mortgage rates are still lower than they were at this time last year and way lower than the 17% of the early 80’s. I had a 10 1/2 % mortgage in 1985.
There are some indicators that the economic downturn is slowing and actually turning around. Job losses slowed, private equity is investing in financials, and the stock market is up nicely.
A time of economic growth and confidence is a much better time to buy a home than during a freefall.
So…yes…you will have to pay a little more for your mortgage money, but now you should have more confidence in your home purchase.
It is a good time to ease back into the market before the upturn in home prices follows the upturn in mortgage rates.
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Exit 13 Blog