Tuesday, May 22, 2012

Pulling Up from the Housing Crisis

Pulling Up from the Housing Crisis


     According to the National Association of Realtors® (NAR) it would appear that the housing market is rallying this quarter in the existing home sales market.  Total sales were up 3.4% from March and up 10% in April as compared to one year earlier.  The month to month total sales are seasonally adjusted to account for increased sales in the summer months due to increased availability of buyers and desire to purchase before the beginning of the school year.  The non-seasonally adjusted increase was 11.1% which demonstrates the swing that the summer season has on the aggregate housing market.  These gains are the highest year to year gains of the past six years.  If you were planning to sell your house or get started on some investment projects now is the time!
     In the distressed sale market there were some very interesting numbers investors should look towards.  In March 28% of all sales were distressed sales, 11% of which being short sales.  This means that the banks were willing to take a loss on greater than one out of every ten houses sold in March.  In addition the NAR points out that the average distressed sale was sold at 21% of fair market value.  This should catch the eyes on investors in the San Antonio area looking at returns of around 30% on their buy/fix/sell projects.  These investors are capturing far greater than 21% equity houses even after repairs have been made.  Check out the following articles for more detailed information.


2 comments:

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