There are some experts questioning whether the current pace of residential home sales is maintainable. Are too many people buying homes like in 2004-2006? Are we headed for another housing crisis? Actually, if we look closely at the numbers, we can see that we are looking at a very healthy real estate market.
Why the concern?
Some are looking at the last four years of home sales and comparing them to the three years just prior to the housing bubble. Looking at the graph below, we can understand that thinking.
However, if we go further back in history, we can see the real picture. After taking out the “boom & bust” years, the pace of sales is growing at quite a natural pace.
And new home sales are way below historic numbers. Dave Liniger, Re/Max CEO explains:
“We expect a seasonal uptick in sales this time of year and March certainly met and somewhat exceeded that expectation. We don’t anticipate the tightening inventory to ease up in most markets until new home construction can catch up to its pre-recession pace. Until then, sellers will enjoy a fast-paced market and buyers will need to work with their agents to get in the right home.”
Bottom Line
The current pace of residential home sales definitely seems maintainable.
California Investors, Need to Short Sale? New Law CCP 580E Is For You
CALIFORNIA CODE OF CIVIL PROCEDURE This law Took affect January 01, 2011...If you are an investor in need of a short sale, however you're concerned about potential recourse.this law was written for you. 580e. (a) No judgment shall be rendered for any deficiency under...
HAFA Horrors! Traditional Short Sales Offer Homeowners "Like" Incentives..No Approvals Necessary!
Not to say HAFA is a complete failure...there are a select group of homeowners that have made it through the "hoops" of the treasury guidelines and have been able to wait out the long approval process to finally be approved. From first hand experience with our own...
Hot Off Press: HAMP Cuts Loan Mod Projections by 1/2…Time For Short Sale?
More news on Failed Loan mods... The 3.3 million borrowers estimated to be eligible for a Home Affordable Modification Program workout in December 2009 was reduced to 1.4 million by the end of 2010, according to the latest Treasury Departmentestimates. And not all...
H.R. 430 Bill to End Failed HAMP Program
Today, Republican Congressman...Representatives Jim Jordan (R-OH), Darrell Issa (R-CA), and Patrick T. McHenry (R-NC), announced the introduction of H.R. 430, a bill to repeal the Home Affordable Modification Program (HAMP). Why? because it's a colossal flop!...
Bankruptcy Judge Upholds Foreclosure Mediation
Well..we're seeing changes happening in the BK courts... Rhode Island BK Judge Arthur N. Votolato, upheld his program that he initiated back in November 2009. This program he labeled the "loss mitigation program" was intended to require lenders to work with homeowners...
It's January 2011…Foreclosure Sales Have Kicked Into High Gear, Time To Think Short Sale?
Bank of America, JP Morgan Chase, Wells Fargo, Citi Bank have moved past the "robo signing" scare and are sending out trustee sale dates at warp speed to their customers. So, those homeowners who have been able to escape payments for months, maybe years...are now...
CNBC Confirms…Another 5 years+ of Short Sales and Foreclosures…
We are always interested when a major media company supports us and what we have been talking about for the last 3 years...Yes...we're in this short sale business for the next 5 years and longer! It’s taken three years to process $1 trillion in foreclosed homes. At...
Wells Fargo Requires Buyers to Increase Down Payment to 30% to Meet "Dodd-Frank" Demands"
If the housing market wasn't already suffering enough...News released today...Wells Fargo is passing the "pain" on to it's new mortgage loan clients making it more difficult to get a home loan...or at least costing the buyer more up front. 2010 saw the new...
VA Demands Mortgage Servicer's Pay Relocation Fees To HAFA Participants
Monday, January 17th, 2011, 3:14 pm The Department of Veterans Affairs directed its mortgage servicers to provide $1,500 in relocation assistance to borrowers leaving their home after a short sale or a deed-in-lieu of foreclosure. The requirement took affect Jan. 6....
California Civil Code Procedure 580; New Law Protects Investors Doing Short Sales
January 1, 2011 rings in a new round of laws that protect the "Investor" seeking to short sale those real properties that are losing you money. To learn more about his law...visit our earlier post at https://shortsalesellit.com/?p=1802
Breaking News…Wells Fargo and Wachovia…POLICY ON THE POSTPONEMENT OF FORECLOSURE SALE DATES
Breaking News from Wells Fargo and Wachovia This information comes to us from a VP at Wells Fargo/Wachovia... Over the last few months, there has been several questions regarding the postponement of Foreclosure Sale Dates with Wells Fargo and Wachovia properties. To...
California Foreclosure Activity in November 2010
CA - Filings By Loan Origination Date CA - Filings per Loan Balance CA - By Est. Market Value
Panel finds Treasury spent $4.3 million in HAFA short sales
Hot off the press.... Tuesday, December 14th, 2010, 10:30 am The Treasury Department spent $4.3 million on incentives to servicers and investors through the Home Affordable Foreclosure Alternatives program through November, a fraction of what it spent on HAMP,...
Mortgage Rates Rise…Refinance Applications Fall
As the yield on the 10-year Treasury hits a six month high, you can almost hear all the doors slamming over in refi land. While you'd think most borrowers had already refinanced their loans to take advantage of the recent record-low interest rates, many have actually...
Freddie Mac Say's "NO" to Scrooge and Christmas Foreclosures
Government mortgage financier Freddie Mac announced today that it will again suspend evictions this holiday season. From December 20 to January 3, all evictions involving foreclosed, occupied single family and 2-4 unit properties that have associated Freddie...
Foreclosure at All Time High…7.4% Higher Than Historical Average
Foreclosure inventories rose to all-time highs last month, according to the October Mortgage Monitor report released by Lender Processing Services. As of the end of October, foreclosure inventories were 7.4 times higher than the historical average and rising. This is...
Second Lien Holders Causing Problems at Close…WSJ Thanks For Finally Recognizing!
This has been a serious issue since the Short Sale boom hit in 2007. It's great to see that we...the Real Estate Agents in "the trenches" are getting some exposure on this very difficult situation that only hurts the seller and the buyer of these distressed homes....
The Rich Are Renting!
Fascinating article today on CNBC about how the rich and super rich are choosing to rent as opposed to purchase...why? It seems that many of the rich have seen so many others get burned int he current real estate market. These trends are not as surprising as the...