Here’s a bright spot in the current real estate market, property sales have begun to rise. According to the federal government, sales of new homes climbed 6.6 percent in September, representing the second straight month of gains, but still well below the pace when the tax credit was available. On Monday, a report showed sales of existing homes also were stronger than expected, rising 10 percent, and the two reports lend support to some economists who believe housing demand hit a bottom in late summer.
There’s plenty of supply, with the government estimating supply of 8 months of unsold homes. “With little new construction going on, inventories of unsold new homes at least aren’t a problem even with sales at such a severely depressed level,” said David Greenlaw, an economist at Morgan Stanley. The median sales price rose 1.5 percent from August and 3.3 percent from Sept. 2009 to $223,800 — about 30 percent above the median price of an existing home. September’s housing market was only partly affected by a foreclosure moratorium of some leading lenders, which gathered pace in October.
Keeping “in the know” of current RE market conditions will enable you to position yourself to make aggressive and lucrative property deals!