Category — economy

Jim Gillespie, president and CEO of Coldwell Banker, appeared on Fox Business News again to chat with Alex Glick about the housing market.

Sales of previously owned houses increased faster than expected in June.

The National Association of Realtors reported that sales rose 3.6%  from May to June.  This is the first increase for three consecutive months since 2004. 

The inventory of homes for sale has in turn declined .7% to 3.82 million in June.  “Overall, the news is positive. We have increasing home sales for the third straight month, declining inventory and although prices fell, they declined at a less steep pace,” Lawrence Yun, NAR chief economist, said at a press conference. “The housing market is healing,” Yun went on to say. 

For the 12th consecutive month, the inventory of homes on the market has reduced.  The number of single family homes and condos fell by 2.1% in June. 

It seems that buyers are being attracted by lower prices and the $8000 tax credit that ends on December 1, 2009.

Is this another piece of information that demonstrates the American housing market is on the road to recovery. 

The Level of Construction of new US homes rose in June to the highest that it has been in seven months. 

Many builders are rushing to build homes for first time home buyers that are taking advantage of the first time home buyer tax credit. The Commerce Department reported last week that construction of new homes and apartments has risen 3.6% over last month.  “This was the most positive housing report in ages” said Patrick Newport, an economist with IHS Global Insight. 

Home buyers are finding that now is the time to buy with low home prices, and the $8000 tax credit that first-time home buyers will be receiving until December 1. 

Construction of new homes jumped in May by the largest amount in three months. 

This growth indicates that the nation’s housing market is showing the beginning signs of recovery.  The Commerce Department said on Tuesday the construction of new homes and apartments rose 17.2% last month.  

Another positive indicator of recovery is the fact that more contractors are applying for building permits. Applications for building permits has risen 4%. 

Pending homes sales have been steadily rising over the past four consecutive months. 

The rise is due partly to the fact that the housing is becoming more affordable and buyers are discovering that now is the perfect time to buy a home.  The First-time buyer tax credit is also boosting home sales. 

The Pending Home Sales Index is a forward-looking projection based on the number of contracts that were signed in a particular month.  In May, this index rose .1 percent to 90.7 from an upward shift from 90.6 in April.  The last time this index increased four consecutive months was in October 2004. 

Lawerence Yun, who is the chief economists for the National Association of Realtors, warns that there might be delays in the number of contracts that actually go into closing.  “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed  or falling through from the application of new appraisal rules for many transactions.”  Yun went on to say “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards.  Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.” 

Call your local realtor today in order to take advantage of these first time home-buyer tax credit.  There has never been a better time to buy.

The Federal Reserve policy makers are beginning to weigh their options to help ease the issues the current economic climate is forcing Americans to deal with.  They will be meeting soon to discuss this situation and asses the options for America.   

It is expected that no immediate action will be taken.  One of the Feds concerns is being cautious that the short term fixes will not cause long-term problems, such as inflation. “There are a lot of good signs that an economic recovery could get under way later this year, and with inflation currently low, the Fed for now has the luxury of sitting back and watching this recovery unfold,” said John Silvia, chief economist at Wachovia. Bernanke, the chairman of the Federal Reserve, has predicted the Recession to end by the end of this year.