A review of market activity last month shows it’s continued transitioning into a market that’s more traditional. Without the effects of the federal government stimulus money that induced purchasers to buy now, altering their normal motivation, sales slowed from previous months. This was expected. But still it was surprising that the market was 30% off compared to the same time period in 2009.
While some would see this as negative news, I call it a normal reaction to market influences and a step in the right direction. From my vantage point, I see a stronger and more balanced market. More homes in higher price ranges are selling now which happened far less frequently a year ago. But mainly I hear and see more optimism in the voices and eyes of customers…and the phone rings more often.
For an in-depth analysis of last months market activity, including actual sales numbers, charts, graphs…take a look at my latest Market Watch Newsletter.
The most positive result of slower market activity is that interest rates dropped to astounding levels. Last time I checked, the rate for a 3o yr conventional loans with NO buy-down points was 4.5%. And for 15 yrs it’s 4.0%. The rate for an FHA loan with only a 3.5% down payment to purchase is 4.375%. Those are amazing rates. Very good timing especially when you consider home prices are more affordable than they have been for years. Great circumstances for anyone who wants to purchase a home or refinance.
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