Favorable Market Conditions

Posted by Laura on June 4, 2009 · Leave a Comment

Reasons for the Improvement
The National Association of Realtors (NAR) just released the latest housing market figures, which shows pending home sales up for the third month in a row. This possible trend could be attributed to the first-time homebuyer tax credit that gives up to $8000 in tax credits between January 1, 2009 and December 1, 2009. Another large factor influencing the real estate market is the fact that mortgage interest rates are still at an all time low.

Why NAR Believes These Numbers Will Increase
NAR chief economist Lawrence Yun states, “Housing affordability conditions have been at historic highs, but now the $8000 first-time buyer tax credit is beginning to impact the market. Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.” NAR President Charles McMillan also adds, “Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger down payment.” This is a great help to homebuyers that qualify for mortgage loans but come up short on cash.

Pending Home Sales and Affordability Index
In the Northeast, the Pending Home Sales Index rose 32.6% in April as compared to the national average increase of 6.7%. Existing home sales are also on the rise with a 2.9% increase for April nationwide and an 11.6% increase for the Northeast region. The majority of this increased activity primarily lies in the lower range of home prices with mid-priced homes showing some signs of improvement as well. Also setting record figures is the Housing Affordability Index, which analyzes the relationship between home prices, mortgage rates and various income levels. In April, the Housing Affordability Index showed the second highest results on record. Hopefully these conditions will remain long enough for the housing market to return to steady ground.

In the last 10 days, Sean T. Shallis and his group representing Weichert Realtors have successfully negotiated three properties for sale in Hoboken and Jersey City. We are committed to busting the real estate myths in today’s news “Properties aren’t selling…No one is buying!” We are presently marketing numerous properties that will qualify for FHA and or VA financing. Call us immediately at 201-427-1032 to find out how to capitalize on the greatest real estate market in decades!