Real Estate Update:

Opportunity Knocks as Recovery Continues

By Michael Ardolino, Broker

March 25, 2011

This has been a very busy news week!  Here’s a recap:

Unemployment Figures

The Department of Labor reported that fewer people applied for benefits last week.  This is the fourth decline in five weeks, and it indicates to economists that layoffs are slowing and hiring is increasing.  There is no question that this helps the recovery of the housing market.

Interest Rates

The 30-year rate went up to 4.81% this week from 4.76% last week.   As noted in my last report, having rates remain so low for so long is an incredible opportunity for buyers!   Smart sellers who are taking advantage of this market as an opportunity to trade up are also reaping this benefit.

Sales Volume & Distressed Properties

The National Association of Realtors (NAR) reported this week that the number of sales of existing homes in February fell 9.6% from the January figure.  It is important to look beyond that headline and note that roughly 40% of the homes sold were foreclosures or short sales, which in a way is a good sign. 

 These sales help clear the backlog of foreclosures and reduce the excess inventory, which is key to the recovery.    

The Local Buzz

Locally, our increased activity continues.  The number of closed sales went up 7.4% from February 2010 to February 2011, according to MLS.  As shown by the two MLS  graphs below, housing affordability is way up, which creates a wonderful opportunity for many families, and the active  inventory of houses for sale is steadily decreasing, which points toward a healthier market.

The Long Island Board of Realtors (LIBOR) also provided encouraging news recently:  It reported in The Advanced Realtor that the housing recovery is progressing at a slow steady pace.  This certainly does not mean that we are out of the woods or that prices will soon rise, but there is progress.   As the old saying goes, “Slow and steady wins the race.”

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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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Copyright © 2011 by Michael Ardolino