3/31/2009

The U.S. housing market appears to be on the verge of emerging from the worst real estate market in three years, according to a survey done by HouseHunt. Sales activity increases were reported in many areas in the past three months (California, Arizona, Florida); first-time buyers continue to bring vitality to the marketplace all across the country; buyers with good credit are able to get mortgage financing; inventories of unsold homes are flat or decreasing in many areas, and listings with the lowest prices in nearly a decade are being cherry-picked in many communities, according to HouseHunt's latest random survey of current market conditions across the country. Even repeat buyers are starting to leave the sidelines.
 

Many HouseHunt member-agents interviewed in this quarterly survey also reported they're using the government's $8,000 tax credit incentive for first-time buyers as an effective marketing tool. 

 
REAL Trends Comment: Almost all of the increase in unit sales is taking place and will take place for the balance of the year in the lower price segments.  Given the substantial spread between conventional rates and jumbo loans, the decline in the equity markets last year and the rise in effective tax rates for middle and upper income households, no significant increase in sales in the higher prices segments are expected any time soon.
 

While the nation's attention is focused on mortgage and foreclosure relief in the entry level and mid-level price points, the market for middle and upper priced homes throughout the country continues to soften according to all brokerage firms with whom we have discussed this issue.

                                                                                            
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