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:
- Cash for Clunkers
- Phase I of Credit Card Bill Rolls Out
- Fed confirms commitment, Bernanke reappointed
Research for Byers and Sellers:
- Motivation for moving
- First-Time Home Buyers survey
Some economists believe that the almost two-year-long economic recession ended in June, and they’re forecasting a return to growth in 2010. So while the encouraging news points to prosperity ahead, the overall economy may continue to run into some road bumps along the way. In the meantime, the strengthening housing market indications bode well, as buyer confidence is increasing with affordability playing a big role.
Looking at existing home sales, the July numbers far exceeded expectations. In fact, for the first time in five years, existing-home sales have increased for four months in a row. That’s a lot of activity. So who’s buying, and what are they buying? First-time buyers continue to pace the market. They purchased 30% of homes in July. And distressed homes accounted for 31% of overall transactions.
The numbers indicate critical activity is occurring at the bottom of the property ladder, and this activity is triggering much-needed trade-up transactions. With the gains in sales, excess inventory continues to be absorbed. And with rosier economic forecasts for 2010, “the buyer psychology may be shifting from, ‘Why buy now when I can purchase later,’ to ‘I don’t want to miss out on a recovery,’” said Lawrence Yun, NAR chief economist.
An additional positive factor is the continued stabilization in housing prices. While prices are lower than they were at this time in 2008, home prices have risen from where they stood at the beginning of 2009. And that’s great news. As the prices hold more firmly, creditworthy borrowers are acting quickly to lock in near historically low mortgage rates. These rates, coupled with excellent affordability, make for an impressive buying opportunity for savvy investors sitting on the sidelines. “As long as home buyers stay within their budget, mortgage payments will be very manageable,” Yun said.On the broader economic front, while unemployment remains a major concern, the government has had solid success with its spending programs. The first-time home buyer tax credit and cash for clunkers automobile programs are considered great consumer successes. Additionally, a proactive Federal Reserve is working to keep interest rates at low levels as long as necessary. So while high unemployment will weigh on the economy for some time to come, governmental action, economic expertise, and time should deliver us to greener returns in the months to come.