As a direct consequence of the credit crisis, the real estate market stumbled thanks to a severe drop in the amount of money that banks were willing to give to potential homeowners. The resulting drop in home prices across the board has now created a buyer’s market, leading to a massive 7.2 percent jump in the number of sales of existing homes in July.
 
The figure comes from the National Association of Realtors, which began keeping track of the statistic in 1999 and has never recorded a monthly increase as large as July’s. According to the report, home sales have picked …read more

The National Association of Realtors has reported a surprising increase in home sales throughout the Midwest, a market that began to recover as early as the end of last year. This gain of 3 percent in the Midwest marks the very first increase since September of last year, signaling the potential for more widespread recovery.
Analysts have credited affordable home prices and a consumer awareness that prices may be at their lowest for a rebound in home sales. The Midwest, which includes twelve states, has seen prices fall an average of 9 percent from last year to now, with $157,000 standing …read more

The housing market has certainly experienced dire straits as a result of the global economic recession with staggering foreclosure numbers and banks unwilling to give out home loans. However, the National Association of Home Builders/Wells Fargo Housing Market Index shows that builder confidence for newly built single-family homes has risen three points in July.
According to the index, which rates builder confidence as 17, it is the highest level since September 2008. A different index that gauges how many prospective buyers there are has risen one point, while the index that determines sales expectations over the next six months has not …read more

The Appraisal Institute today released a valuable guide to understanding the real estate cycle. While many factors affect the value of homes including the laws of supply and demand, their quick reference guide to spotting a turning point in the market should be a priceless resource to would-be investors, especially first timers!
Ten signs that the the real market has hit bottom:

A spike in local sales activity – a spike refers to a significant rise in the number of home sales (or values) in a local market area, which generally is measured month to month. A spike does not necessarily mean …read more

According to a new report by Harvard researchers, immigration might be the factor that keeps the housing market on the path to recovery. If immigration were to slow down, the resulting lack of customers would hurt the real estate market further on down the line, meaning that the group of researchers recommends no dramatic changes to immigration policy.
 
The same Harvard economists cite the current unemployment crisis as the major factor keeping the housing market from recovering more quickly. On a more optimistic note, the economists concluded that the housing market continues to correct itself as more and more home prices …read more

First-time home buyers will receive an $8,000 tax credit if they purchase a house between January 1, 2009, and December 31, 2009.  The $8,000 tax credit is for the purchase of a primary residence, must be for a first-time home buyer and is not meant to be re-paid.  This is a credit not a loan and has been created to be an incentive for people who are considering purchasing their first home. The tax credit is to be claimed on the buyer’s tax return and any unused portion will be mailed to the buyer.  The $8,000 tax credit is a …read more

To move a home now, sellers have to be willing to do one thing above all others: Negotiate with buyers.

No reporter I know caused mortgage lenders to loan money to buyers with awful credit. No newspaper forced homeowners to raise the prices of their houses to artificially high levels. And not a single Web expert forced buyers to take out ill-advised adjustable-rate and interest-only mortgage loans.