1.14.10

Signs of Housing Recovery

Mortgage rates declined last week after rising for the past month, according to a weekly survey from Freddie Mac. The average rate on 30-year fixed-rate mortgages is now hovering closer to 5%.

Many news sources have reported that the recovery in the housing market has been shaky at best.  The first-time home buyers’ credit has certainly helped to spur sales and push home prices higher.  However, the National Association of Realtors’ index for pending sales of previously owned homes declined in November, indicating the increase of home buyers in October trying to beat the deadline for the tax credit. (The tax credit has since been extended through April and also includes a provision for existing home buyers.)

Additionally, the government is planning to complete its $1.25 trillion mortgage-backed securities repurchase program in March, which has certainly helped to stabilize the mortgage market and keep rates low. Many are fearful that the Fed’s completion of the program will push mortgage rates higher and throw the fragile housing recovery off course.

I certainly cannot predict how the housing recovery will shape up, but I can share with you what I have been seeing in our local marketplace.

 - The extended tax credit has continued to incentivize buyers, as I am receiving many calls to help people find homes prior to the April 30^th deadline.

- Inventory has decreased in our area, indicating that the supply and demand for houses is leveling out.  This would cause me to believe that home prices have stopped declining.

- Many of my first time home buyer clients are taking advantage of the FHA loan. This loan allows buyers to put a minimum down payment of 3.5% and it allows up to a 6% seller assist to closing costs. Right now this is the best deal going for buyers with a relatively low amount of money to put into the transaction.

As always, feel free to contact me with any real estate questions you may have. 

Shawn Tammaro, Realtor, CRS, GRI

Source: Wall Street Journal

“I provide comprehensive real estate sale services to home buyers and sellers in the greater Philadelphia, PA area including Montgomery County, Bucks County, Chester County, Delaware County and the city of Philadelphia.  I offer a complete education process for my niche markets such as first time home buyers, first time home sellers, and investors.  I have in-depth knowledge and experience in residential resales, new construction, foreclosures, sheriff sales, and short sales.  If you would like to buy or sell a house in the area contact me at 610-994-1148 to setup an appointment.”