July Home Sales Increase as Prices Decline

Homebuyers are taking advantage of depressed prices of existing homes. Home sales in July rose by 3.1% with many of the reported sales being foreclosed properties and private owners pressed to sell for less than they had originally paid for a home. The increase in sales is reported to be the largest single monthly increase since Feb. 2007.

Prices of existing or previously owned homes nationally were 7.1% lower in July than they were a year earlier according to the National Association of Realtors (NAR) as homebuyers took advantage of the lower prices and still favorable mortgage rates. Although sales have increased prices have continued to fall. The rule of supply and demand still applies and should continue putting pressure on prices as available homes for sale continue to outpace sales and more inventory comes on the market. . Anyone who does not need to sell quickly should wait until some of the dust settles before putting a home on the market.

Homebuyers may not want to wait to long on the other hand. It may be wise to grab up a property now considering some of the conditions that may affect buying ability or buying power over the coming months:

- On October 1 of this year FHA is required to have the ability to insure and refinance as much as $300 billion dollars in home loans for existing homeowners. This measure of the Housing and Economic Reform Act of 2008 could significantly reduce the number of homes entering the market over the last 3 months of this year.

- Interest rates are favorable now and may begin to rise as inflation becomes more of a threat.

- The First Time Homebuyer Tax Credit is available until June 30th of 2009. Taking advantage of buying this year allows the buyer to take that credit in 2008.

Anyone needing more information on available homes and prices in Southeast Florida can contact me directly either by phone 561-306-6736 or email at rebuygeorge@yahoo.com. You also may want to visit my website at ges-realty.com .