Despite the stock market being jumpy and investors worried that the global recession may not be ending soon enough, we are seeing strong positive signs in the home real estate market.
Pending home sales rose sharply, by nearly 7 percent, in the latest month measured by the National Association of Realtors. Pending sales were up in all four major regions of the country and that caught the attention of some key industry economists.
Mortgage rates continue to be favorable, an average of 5.3 percent last week for 30 year fixed rate loans, 4. 8 percent for 15 year fixed, and those rates are pulling in growing numbers of home purchase loan applications.
According to the Mortgage Bankers Association's weekly survey, new applications to buy houses increased by nearly 7 percent in the week ending July 3rd.
More than two out of three buyers polled by the group -- 68 percent -- said affordable prices are the key factor pulling them off the sidelines.
Now, of course, not everything is on the plus side in the real estate sector. Many of the houses being sold at near-giveaway prices are the byproducts of foreclosures and short sales, signs of continuing financial distress among many buyers who purchased at the height of the boom with low equity stakes.
Even the rental market is taking some economic hits in the face of rising home sales. Rental unit vacancies have just hit 7.5 percent nationwide; that's the highest they've been in 22 years, according to the New York research firm that compiles these statistics.
So on balance, real estate market conditions depend on where you're looking.
If it's home sales, the outlook is improving. On rentals, it looks like the turnaround will be a little further down the road.
For more information about homes in your area please contact bill.swanson@cbshome.com.
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