I thought I would share a recent summary of market conditions from the National Association of Realtors (NAR). There were a few interesting facts and figures that I am often asked about.
Many buyers perceive a foreclosed property or short sale as a chance to get a home at "basement bargain" pricing. I have heard expectations of 50% savings or more. But on average nationally foreclosures sold at a median discount of 15% this past November and short sales sold at a median discount of 10%. And keep in mind that dealing with bank owned property you do not always have the ability to negotiate contingencies and many homes are sold "as-is".
Affordability continues as mortgage interest rates and home prices are still historically low. But the NAR is predicting a market recovery to a sustainable healthy market in 2011 and is predicting gradual interest rate increases in 2011. Buying this 2011 winter will still provide many great opportunities for buyers as there are fewer buyers competing during these winter months. Expect the competition to heat up this spring.
October and November 2010 data shows that 32% of homes purchased were first time home buyers showing that for good credit buyers the bank financing is available. Lock into a 15 or 30 year mortgage now and it well may be one of the smartest investment decisions you will make in the next 30 years. Investors accounted for 19% of home buying transactions.
And specifically in the Northeast existing home sales rose in November by 2.7% and the median price was $242,500 - 9.2% higher than a year ago.
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