West Savage Real Estate Blog

State of the Nation's Housing 2009

The Joint Center for Housing Studies is Harvard University's center for information and research on housing in the United States. The Joint Center analyzes the dynamic relationships between housing markets and economic, demographic, and social trends, providing leaders in government, business, and the non-profit sector with the knowledge needed to develop effective policies and strategies. 

To read their new report, click here: 

West Savage Housing Market - May 2009

By Chad & Sara Huebener

 

For our West Savage neighborhoods, pending sales are holding steady, while sold (closed) listings in the past 45 days have decreased.   There is no need for alarm, however.   Pending sales are the noteworthy component here.  Many closings (for these pending transactions) are projected further into the future, as opposed to happening in just a few weeks like we used to see in the past.  

 

A couple of things are going on here..... First of all, lender requirements have tightened, so buyers need to jump through more hoops to get qualified, and must allow more time for scheduled closings.   Secondly, transactions involving bank-owned homes and short sales are more difficult to coordinate.  Banks do not respond nearly as quickly to offers and negotiations as a traditional seller would, and consequently, we are counseling buyers to expect delays and lengthy waiting times before writing the offer.  This is especially true of short sale transactions. 

 

Inventory and expired listings continue to rise in West Savage, though ever-so-slightly.  Expired listings are an indicator that buyers are not willing to pay the stated list price of the home.  West Savage home prices are down an average of 20% per year over the past two years.  This message is exceptionally difficult to convey to a seller who bought during the boom and added significant upgrades to the home since the purchase, and now needs to sell.   In many cases, the value of those upgrades (in the monetary sense) is simply lost.   However, these upgrades might make a property much more attractive compared to the competition.  When an average of 3 homes in our West Savage marketplace sell each month, the ability to stand out among the competition is critical. 

Our West Savage absorption rate has increased to 11.5 months.   This means that if zero new homes come on the market, it will take 11.5 months to sell the existing inventory. 

If you would like to get a monthly updated report on West Savage Homes Prices sign up here: http://www.WestSavageHomePrices.com

 

Recommendations Underway to Reinvigorate the Housing Market

 I am writing to let you know of a positive development for the real estate industry that was recently announced by the Business Roundtable, an association of chief executive officers of leading U.S. corporations. Specifically, the Business Roundtable’s Housing Working Group issued a set of recommendations for the White House and Congress that are aimed at jumpstarting the housing market in order to stimulate a broader economic recovery.

The Business Roundtable’s recommendations are as follows:

· Keep mortgage interest rates at historically low levels (below 5 percent) for at least one year;

· Expand the current First-Time Homebuyer Tax Credit incentive from the lesser of 10 percent of the purchase price of the home or $8,000 to a higher limit of either 10 percent or $15,000 for all homebuyers, remove the income restrictions and include all primary residence purchases for one full year;

· Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates;

· Make permanent the current temporary conforming loan limits; and

· Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices.

We believe targeted, demand-side solutions – such as the ones Business Roundtable is recommending – will provide a critical next step for a housing recovery that will help create jobs and boost the economy as a whole. To obtain a copy of the Business Roundtable press release and its Housing Working Group’s detailed recommendations, click here. To read an article that appeared online in The Wall Street Journal containing an interview about the Business Roundtable’s recommendations and why they are crucial to jumpstarting the housing market, click here.

We all must understand that the legislative process is often a long and winding road that is hard to predict.  We will communicate with you as these legislative opportunities occur.  

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Just Sold by Chad & Sara!

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