The number of homes for sale across the nation is up due to the numerous foreclosures breaking the market. Existing home sales have fallen as a result. The overall picture of the housing market remains mixed, but numbers for house prices and houses on the market are trending upward.
In states hardest hit by the housing collapse, short sales and REOs account for the majority of homes for sale. In California, they account for 50 percent of the market and first-time home buyers are taking advantage of the discounted housing. This is true of Florida and Arizona as well.
A new report by the Department of Treasury cites a modicum of success in government efforts to help distressed homeowners. More homeowners have received trial loan modifications, which has kept possible foreclosures off the market for the time being.
New Homes for Sale Hardest Hit
The number of new homes for sale continues to be high as developers built a multitude of homes during the housing bubbles. However, these homes are proving the hardest to get sold. A report by the U.S. Department of Housing and Urban Development reveals that new homes for sale and sold were down 11 percent from December 2009 to January 2010. This is a 6 percent decrease from January 2010 from January 2009.
The glut of foreclosures on the market as well as the unemployment rate are to blame for the lack of new home sales. The spring real estate market, however, may be the sea change needed to boost home sales.
Warmer weather tends to see more homes for sale and more prospective buyers getting into the market. Overall, home sales are up on both coasts. In Baltimore, for example, home sales rose by 9 percent in February. In Des Moines Iowa, pending home sales were up 25 percent than compared to a year earlier.
The first-time home buyer tax credit has pushed the number of homes for sale and homes sold up tremendously. The credit is soon to expire and it remains to be seen what the effect will be on home sales. Mortgage rates are also expected to rise as the Federal Reserve ceases its buying of $1.25 trillion in mortgage-backed securities.
Written by Lani Shadduck
HULIQ.com
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