Sales of existing homes in the US sequentially increased 10.4% during October 2010, according to the National Association of Realtors. This is the biggest gain in the nine-year history of the measurement.
Does this mean the worst is behind us and houses will begin selling at a more robust pace and at higher prices? Or is this a positive number that is being taken out of context?
The positive thinker will point to what seems to be an improving US economy (although slow growth), coupled with low mortgage rates are spurring those on the sidelines to enter the market. With the Federal Reserve recently indicating it will continue its monetary easing, it is likely mortgage rates will remain low. The low rates and many distressed properties offer the perception that now might be offering a once in a lifetime opportunity to purchase a home.
The more pessimistic view is that the number is one data point, and when compared with several years ago, is still not an indication of strong demand. With the supply of houses in the market, a sustained recovery in prices is far in the future, according to a more dampened view of the data.
With the recent increase in US unemployment to 9.8%, from 9.6%, we think the more pessimistic view is more realistic. The economy may be more stable when compared with a year ago; but, there are not enough jobs being created to substantially increase demand, in our view. In addition, the believed oversupply of homes in the market means there should not be much in the way of robust price increases during the 12 months, in our view.
If you are buying or selling a home, please feel free to contact me.
I have provided a link to a property search engine below where you can find and view listings. Contact me for more details on those listings and/or information in the area.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
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