Home sales rise though real estate costs decline

A rise has been noted in national home sales, however housing prices are nevertheless trending downward. Loan providers have to be pleased with more individuals attempting to purchase a property. That said, it may be that sales are only picking up due to low prices rather than rebounding consumer confidence. Resource for this article – Housing prices decline, but home sales are rising by MoneyBlogNewz.

Homes becoming an investment

CNN reports that the National Association of Realtors explained that more individuals are purchasing property with property sales nationwide. Property sales rose 2.7 percent over January 2011, to a seasonally adjusted rate of 5.36 million per year. For the first time in seven months, property sales are over the figures from a year ago. There was a 5.3 percent increase from January 2010. People who have not had to make their way to a lender to buy the houses have been the ones making this increase happen though. The number of money purchases was 32 percent of all sales, up from 26 percent in Jan 2010. Sales to investors made up 23 percent of sales, which accounted for 17 percent of property sales in January 2010.

Foreclosures didn't help

The discounts on foreclosed properties are what have gotten many money buyers and buyers interested. Bloomberg explains how many properties were distressed. In January 2011 home sales, 37 percent had this issue. More homes are accessible at rock bottom costs, and many loan businesses are anxious to get a home off its balance sheet. Even if a property is sold for half as much as it would normally go for, many people can't afford to pay for one out of pocket. There was a 3 percent drop in the median home price in January 2010. Now, $158,800 is the price.

Lower home costs nevertheless

USA Today reports that the metropolitan areas are having home values drop drastically. The Standard & Poor’s Case Shiller Index recorded drops in all however one of the 20 major cities it tracks. Only Washington D.C. didn’t see property costs decrease. Areas with inflated real estate values for instance Arizona, California and Florida have experienced the worst in decline, but southern states like Mississippi and Alabama are also experiencing price declines. The rise in sales may signal reversing demand, and several economists believe 2011 can be a year of dramatic recovery.

Information from

CNN

money.cnn.com/2011/02/23/real_estate/january_home_sales/index.htm

Bloomberg

bloomberg.com/news/2011-02-23/sales-of-u-s-existing-homes-climb-to-eight-month-high.html

USA Today

usatoday.com/money/economy/housing/2011-02-22-home-prices_N.htm