Everything is not perfect but there are some reasons to be more optimistic so here is some good news:
HOUSING DATA:
Pending Homes Aales index was up 2.1 % in Feb over Jan but still a little lower than Feb 08
Existing Home Sales up 5.1% in Feb
Sales of New Homes were up 4.7 % in Feb from Jan.
NAR says that with falling prices, low mortgage rates of about 5 percent, home ownership is more affordable than it has been since 1970. Housing afford ability index rose .9 % to a record 173.5% more than 36% higher than a year ago.
Loan rates on conforming loans now at historical low levels, housing is now more affordable than it has been in years!
Pent up demand- many buyers have been on the fence waiting for a long time due to lack of confidence and now with some positive signs in housing, the stock market, low prices and loan rates, many are becoming more confident and tempted to buy.
First-Time Buyers and Investors are out there buying. First-Time buyers accounted for about half the transactions in Feb and typically buy entry level homes and are looking for a deal. Investors are also out there buying and that is a good sign - some homes now offer an investor immediate positive cash flow.
Data is showing that in Areas where the "price is right" buyers are responding.
In California: In San Bernardino County units sold are up over 87 percent over Feb 08 Los Angeles County units sold are also up about 32 percent over Feb. 08. San Diego County had a number of sales, year over year, that was up for 8 months and all but one of these months were double digit increases.
There are homes for sale today that are less than half what it would cost to build today!
There are also tax incentives here for example in California for purchases of new homes and also incentives for first time home buyers nationwide.
With the government spending so much money inflation could be on the horizon so investing in hard assets will be important to preserve wealth.
Now have a good day!
Connie
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