Monday, November 01, 2010
EXISTING SALES ARE HEADING ON UP
September showed an increase in home sales, causing NAR chief economist Lawrence Yun to say, “A housing recovery is taking place, but will be choppy at times depending on the duration and impact of a foreclosure moratorium. But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions.”
Let’s keep our fingers crossed that this path upwards will continue.
Interest rates have fallen to about half what they were nearly a decade ago, causing, in some cases, monthly mortgage payments to be less money than renting. About 35% of the September sales were distressed sales. According to reports, there will be more to come for some time into the future, while the government struggles to clear up a review of banking agency practices, looking at irregularities and weaknesses.