Real Estate Blog
Thursday, March 17 2011
The Market’s Momentum Continues….
In my last report, I noted that the market seems to be moving in the right direction. Now, one month later, I’m happy to report that the momentum is still evident:
The 30-year rate continues to hover around the 5% mark, standing now at 4.88%. This represents a continuing, unprecedented financial aid for buyers, as well as for sellers who are moving up to their next home.
According to the Mortgage Bankers Association, mortgage applications rose by 16% in the week ended March 4. This is the largest increase since June, and it bodes well for future closed sale figures. It also indicates that banks are beginning to lend more readily, which should help foster the continuing recovery of the housing market.
Because unemployment rates are so fundamentally tied to the strength of housing market, it’s important to continue to watch the trends. This week, the Labor Department reported that claims for unemployment benefits remained below 400,000 for the third straight week. Economists see this as encouraging news.
Notes From the Field
I often use the law of supply and demand to illustrate market trends. Now, let’s employ a law of physics instead:
“Objects in motion tend to stay in motion, while objects at rest tend to stay at rest.” Our local real estate market is moving!
I have seen an increase in both the number of potential buyers and the number of contracts. People are buying homes locally, which will continue to lower the level of excess inventory.
Also, more sales of distressed properties have been occurring locally, which is a key factor in the recovery. The sooner the backlog of foreclosures and short sales is absorbed, the sooner the market can stabilize, and, ultimately, significantly improve. At that point, we will see home price appreciation.
With every home sold, our market gets healthier.
As always, I am committed to keeping you abreast of market conditions. As a nationally recognized real estate expert with decades of professional experience, I’ll continue to provide updated information. For additional data, visit www.Ardolino.com, where you’ll also find my blog. If you need help understanding how real estate news affects you, call me at 631-941-4300 or e-mail: Michael@Ardolino.com.
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