- The National Association of Realtors reported on Monday that existing home sales increased in September compared with August, although they still trailed September 2009.
- According to report released yesterday, new homes sales increased nationally by 6.6%
- This morning, the US Labor Department announced that initial jobless claims dropped to a three-month low.
- Freddie Mac's most recent mortgage rate report put the national average for a 30-yr fixed mortgage at 4.23%, up just slightly from last week's record-low average of 4.21%.
It is important to remember that all of this data is from national reports, which often don't reflect what's going on here in Portland and SW Washington. Even the regional data included in these report don't necessarily describe local conditions, as our region includes both California and Nevada, two states that have been hit particularly hard by the decline in the housing market. Regardless, if this trend of positive data continues, it will likely boost consumer confidence going into 2011.
The two biggest obstacles to recovery in the real estate market are bank-owned/short sale properties, which deflate prices, and concerns over unemployment. If unemployment continues to drop in the two months of 2010, that will be a positive indicator for next year's real estate market. The other challenge, however, does not appear to be going away anytime soon. In Clark County, foreclosed homes accounted for nearly 27% of all home sales between July 1 and September 30.
Historically low-rates and the number of bank owned properties on the market provide great opportunities for first-time homebuyers, or buyers who do not need to sell their current home to purchase. Of course, people need to feel secure in their jobs or they won't be making a purchase as significant as a new home.
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