Washington, DC, July 28, 2011
Pending home sales increased in June following a wide swing down in April and then up in May, according to the National Association of Realtors®. Activity increased in the West and South but declined in the Midwest and Northeast; all regions show strong double-digit gains from a year ago.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 2.4 percent to 90.9 in June from 88.8 in May and is 19.8 percent above the 75.9 reading in June 2010, which was the low point immediately following expiration of the home buyer tax credit. The data reflects contracts but not closings.
Yun said tight credit and economic uncertainty have been constricting the market. “The best way to ensure a more solid recovery in housing is to simply return to normal, sound credit standards so more creditworthy home buyers can get a mortgage,” he said.
“Washington also should not rock the boat with policy changes that would negatively impact affordable credit or otherwise increase the cost of buying or owning a home,” Yun added.
The PHSI in the Northeast slipped 0.4 percent to 68.9 in June but is 19.4 percent higher than June 2010. In the Midwest the index fell 3.7 percent to 79.7 in June but is 26.4 percent above a year ago. Pending home sales in the South increased 4.4 percent to an index of 99.2 and are 19.1 percent higher than June 2010. In the West the index rose 6.4 percent to 107.0 in June and is 16.4 percent above a year ago.
Existing-home sales this year are expected to total 5.0 million, slightly higher than 2010. Similarly, little change is forecast for aggregate home prices with several indicators, including NAR’s median prices, showing recent signs of stabilization.
Looks like the real estate market in Whatcom County, WA is heating up right on schedule with the summer season. With an increase in total properties sold in Whatcom County from April to June by aproximately 15% and pendings by aproximately 32%, we are definitely moving in a positive direction here in our neck of the woods. Also, the average price per square foot has shown a slight increase by aproximately 3% from April to June. For a look at Current market trend graphs demonstrating the above statistics, Click Here.
Currently in Whatcom County, aproximately 12% of active property listings (including commercial, vacant land, and residential) are either Bank Owned or Short Sales. What does this mean for buyers? If a buyer is looking for a ‘good deal’ and is willing to either wait on a short sale or repair a bank owned home, this means 12% of the inventory for the buyer to search may fit their needs. ~If you are a buyer and would like assistance finding the right buy in the 12% market, please contact either Julie (360.296.6092) or Danielle (360.483.6490) for assistance in your search.
i) Short Sale Credit consequences
(a) Can reduce score by 75-125 points
(i) Vs Foreclosure (300+ point reduction)
(b) Cannot get FNMA loan for 2 years
(i) Vs Foreclosure – 5 years
(ii) Vs Deed in Lieu – 4 years
(iii) Vs Bankruptcy – 2-5 years (depending on Chapters)
(c) FHA – UK
(i) Vs Foreclosure – 3 years
(ii) Vs Deed in Lieu – 3 years
(d) VA – UK
(i) Vs Foreclosure – 2 years
The Commerce Department said the seasonally adjusted rate of 323,000 units last month was up from 301,000 for March, which was revised upward slightly. April new home sales were down 23.1% from 420,000 a year earlier.
The median sales price of new homes sold in April was $217,900, up 4.6% from March.
Jerry Howard, chief executive officer of the National Association of Home Builders, believes the housing market is still “bouncing along the bottom.”
Priced To Sell! This Dream townhome has loads of upgrades that you don’t want to pass up. Cherry cabinets, granite counters, high-end stainless appliances, extra large custom island, great room features fireplace and access to patio with amazing golf course and mountain views!!! Luxurious master suite with sitting area, fireplace, deck, large jetted tub with double vanity and 5ft steam shower! Right by the first tee, this home is steps from the clubhouse and a must see!For your private showing, call Julie today at 360-296-6092