Colli Real Estate

Mixed Housing News

Sales of new homes dropped unexpectedly last month, sales of existing homes were upward for the second consecutive month, though still slightly below expectations.

New homes fell 0.6% to 342,000 units sold. The month saw 344,000 new homes withdrawn market, but again short of estimates. Manufacturers are obliged to reduce their price for trying to keep pace with the market for existing homes and foreclosures prices continue to fall.

There are plenty of deals out there, many of them take as they become available. It is certainly a buyers market yet, but should be quick get the best deals.

Last year at this time, the median price home was $ 207,900. The average price at for a household in the United States is $ 173,000. It is a very significant reduction in the price.

There comes a time when the low price of new housing becomes untenable. For manufacturers today are losing the battle of the banks and the owners are dominated sales in the housing market. With sales of new houses for radical, builders, many had "eliminated" by design or stop going out of business. Good news for consumers when contraction. In times of booming activity in any batch of new companies are created to make Quick top dollar. All are still reputable, trustworthy or customer oriented. Companies that are increasing the contractions are often strong and good. The survival of the fittest at best.

The sales price of homes fell 17% from last year's big at the time by buying an interesting perspective. For two months now after sales of existing homes rose permanent reduction in inventory. Experts predict more foreclosures in the future until the housing market has a chance to stabilize. Of course, all the positive news is well received by investors, buyers and sellers. The market seems to have possibly a little substance.

Sales of existing homes rose 2.4% to 4.77 million against 4.66 million the previous month but lower than the 4.83 million expected. While sales have increased, unemployment figures published by Government borrowing costs put a brake on buying enthusiasm, as evidenced by sales figures for housing new. This after four years of declines. Again, much of the purchasing activity is due to government programs, namely the first $ 8000 buyer credit time offer.

Some economists see the light at the end of the tunnel on the housing market. "Improving accessibility because of low prices and low interest rates prompted some selling, "said Nigel Gault, chief economist at Global Insight. "While rates do not increase significantly far away, still could stabilize the housing market. "

If we have reached a bottom in the housing market decline or no pressure exerted on the bonds will have an impact on interest rates. The Federal Reserve has often said that the federal funds rate will remain the same as the rest of this year, unless a national emergency. There is always the possibility that inflation infiltrating us. The problem is that the economy is improving, investors will move from the relative safety of bonds for risk stock market and higher costs. As bond prices ranging from lack of demand, which will raise the interest rate that banks require to lend to consumers. Bonds and interest rates move in opposite directions from each other.

Therein lies the risk for the prospect of new owners. As the economy improves and consumers can buy better housing, prices Housing and interest rates likely to start increasing. Thus, options to buy now, while prices and interest rates are at historically low levels of incentives and non-governmental organizations are there, or wait and hope that the economy is weak and prices fall further.

Joel Weihe

06/25/2009

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