Every month Keller Williams performs an in-depth analysis of the Real Estate Market. August 2009 marks the last month of summer in 2009 and it was a very busy month for Real Estate transactions. This presentation looks at the National Real Estate Market. If you are interested in our South Walton market or specific areas including Grayton Beach, Seagrove Beach, Destin, Sandestin, Rosemary Beach, WaterColor or WaterSound, please call or email Craig or Tracy @ Team Baranowski 850.259.1788 or 850.259.4270.
CLICK HERE TO DOWNLOAD a pdf copy of the Team Baranowski – This Month in Real Estate August 2009 Report.
The detailed report includes: Home sale update, median home price update, inventory update, mortgage rate analysis, and affordability index update.
Recent Government actions including:
- First-time Home Buyer Tax Credit Update
- Credit Score Impact of Loan Mods
- Freddie Gets Serious About Helping
Research for Byers and Sellers:
- Little Improvements Make a Big Difference
- FHA Loans Continues to Be Popular for Buyers
U.S. economy slowly mending as hope remains for sustained housing recovery.
For nine percent of Americans seeking employment, it’s tough going out there. But better economic data is expected in the third quarter, and this projected improvement should translate into a positive boost for the job market and, importantly, lead to broader economic stabilization. At the same time, the housing market remains under pressure from record rates of home foreclosures.
Currently, the housing market’s main lifelines include the $8,000 tax credit for first-time buyers and the Federal Reserve’s massive purchase of mortgage-backed securities. Both of these programs may be running their course, however, as the tax credit is due to expire at the end of November and the Federal Reserve is starting to taper off its purchase of mortgages. In lieu of these government actions, the best hope for a more sustained recovery in the housing sector is a more normalized balance of inventory. Such a balance requires continued stabilization in home prices across the country, which will likely take some time.
In the meantime, as long as mortgage rates stay low and housing affordable, there are buying opportunities to be had and willing and able buyers who will continue to absorb inventory. So while home sales slowed from their strong pace in July, they continue to be much higher than before the stimulus. Lawrence Yun, NAR chief economist said, “The recent trend shows broad improvement in most of the country, but with an expected rise in foreclosures over the next 12 months we need to maintain a healthy level of ready buyers to absorb the inventory. An extension of the tax credit is critical to preserve incentives for financially qualified buyers to enter the market.”
Among the positive developments this month are the jumps in new home sales, personal income and spending. Increases like these show the economy is improving, albeit at a slow pace. Personal savings dropped to about 3%, meaning consumers are actually opening their checkbooks again, while still maintaining a degree of savings. The unemployment picture still remains gloomy, but the rate of layoffs decreased for the fourth consecutive month—a good sign.
