Buyers: Which way is the Housing Market going?

By realtordan62 On May 27, 2009 · Leave a Comment · In Mortgage

Is the sky still falling?

It is easy to be confused by the conflicting reports. I know as a real estate professional, I am often flummoxed by the market analysis from many. This Standard & Poors/Case-Shiller home price index showed the first quarter results for 2009. The result is another quarter of declining home prices. If you review the reports directly, you will see what everyone has been talking about. Home prices are falling!

Now for some perspective. This cloud has a silver lining. The good news is this, as we approach the bottom we aren't traveling as fast. James B. Lockhart the director of the FHFA(Federal Housing Finance Agency) said this: â€œOur latest data are consistent with growing evidence that housing market conditions may be stabilizing in some parts of the country…"

Stabilizing. This means that there will be a relative period of calm. I don't see home prices storming back. but as rates remain at record lows and the economy stabilizes buyers confidence will continue to increase and buyers will be more comfortable with moving forward.

Now in another report, mortgage applications filed last week fell a seasonally-adjusted 14.2% (Marketwatch) This means buyers and refinances took the week off right? Memorial day weekend and all. Rates have jumped again today and are sitting at 5.25% So this may be the cause. All to more reason to strike while the iron is hot.

So what's the point. Here it is, If you listen to the national media, your going to get a broad impression. The Northwest Multiple Listing Service Released a strong report for April. Here is the local trend:

Lower prices, record low mortgage interest rates, improving consumer confidence, the $8,000 first-time buyer tax credit and other incentives for buyers are credited with spurring activity. Industry officials, noting activity is quite strong in the lower, more affordable price ranges, hesitate to declare a housing recovery is under way:

Dropping inventories and rising affordability are positive signs, according to Frank Nothaft, Freddie Mac's chief economist. "The housing market may be edging toward a bottom," he stated.
"April was a good market for new pending sales; we seem to be moving to a more balanced market," said NWMLS director Meribeth Hutchings, broker/owner of Windermere Real Estate/Lake Stevens, Inc.
"We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around," said Lawrence Yun, chief economist for the National Association of RealtorsÂ®.

I have personally helped clients take advantage of this extreme buyers market. I can tell you that we are near the bottom. Perhaps we have a few months to go, or maybe another year. One thing is certain: Real estate is always good, as far as I'm concerned.-Donald Trump