The Gate Arty Blog - August 2009 Archive

New Homes Sales in July 2009

Monday, August 31, 2009 - By Gate Arty

The United States Commerce Department announced that sales of new construction homes rose 9.6% in July.  This is the highest increase in 4 years. The housing sector appears to be showing some signs of stabilization. Regionally, the Northeast saw a 32% rise in sales, while the South saw a 16% rise, and the West saw a 1% rise. Sales did drop 7.6% in the Midwest. With inventory finally beginning to decrease, demand appears to be gaining some momentum. There were 271,000 houses on the market last month, down 35% from July 2008 and the fewest since March 1993. At the current sales pace, it would take 7.5 months to sell all homes.

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Sale Increase 4 Straight Months!

Monday, August 24, 2009 - By Gate Arty

Existing home sales rose a whopping 7.2% in July to 5.24 million units. In June, there were 4.89 million units sold. This increase was the largest month-to-month gain in over 2 years! The percentage increase was the largest since 1999. This also marks 4 straight months that we have seen sales increases. Lawrence Yun, NAR chief economist, said, “The housing market has decisively turned for the better. A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales.” Remember that the $8000 stimulus tax credit runs through November so act NOW!

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Mortgage Deliquency Rises

Thursday, August 20, 2009 - By Gate Arty

The mortgage delinquency rate, which is defined as the percentage of mortgage holders who are over 60 days or more late on their payments, rose for the tenth consecutive quarter (thru 2nd QTR, 2009). It is now at an all-time high of 5.81%. How should we put this figure in perspective? Well, that is an increase of 65% from the same time period last year. Nevada, Florida, California, & Arizona led the way with the highest foreclosure rates. North & South Dakota and Alaska had the lowest rates.  

Don't forget to visit Central Florida's premier real estate website for all your Lakeland Real Estate needs including Lakeland Foreclosures

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Foreclosure News - 2nd Quarter 2009

Thursday, August 13, 2009 - By Gate Arty

Foreclosures continue to be the driving force in today’s real estate market. In the 2nd quarter, foreclosures & distressed sales accounted for over a third of all sales! According to recent statistics, the rate of foreclosures jumped another 7% in July from June. This also represents a 32% increase from the same time period last year. More than 360,000 homes with mortgages received foreclosure filings in July. This was the highest point since January 2005. California, Florida, Arizona, & Nevada accounted for an astounding 57% of July foreclosures nationwide! Many factors contribute to the tidal wave of foreclosures like: tighter lending guidelines & unemployment, but chiefly responsible is the negative home equity that many homeowners now have. Many homeowners are finding it “easier” to go into foreclosure than ride out the market waiting for values to rebound or restructure the loan.

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Homes Sales Increase Again

Thursday, August 13, 2009 - By Gate Arty

Homes sales increased 3.8% in the 2nd quarter of 2009 from the 1st quarter. The annual adjusted rate was 4.76 million in the 2nd quarter & 4.58 million in the first quarter. What is accounting for this rise in activity? No doubt, the great values in the housing market are beginning to capture the attention of prospective home buyers. The $8000 tax credit that will expire on November 30th is also a major motivation. The median sales price in the first quarter was $174,100, which represents a decrease of 16% below this time one year ago. “With low interest rates, lower home prices and a first-time buyer tax credit, we’ve been seeing healthy increases in home sales, which are a hopeful sign for the economy,” said Lawrence Yun, NAR’s chief economist.

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Homes Getting Smaller

Wednesday, August 12, 2009 - By Gate Arty

We have all heard that the demand for new home construction has shrunk due to home buyers targeting foreclosures & short sales rather than building new homes. Did you know, however, that the actual size of new homes is shrinking as well? I mean literally. The U.S. Census Bureau reports that the median size of new homes has dropped to 2,065 square feet. This represents a 7% drop in size compared with this time last year. Most industry professionals attribute the reduction in home size to the economic downturn. “Home size gains flatten out or decline during recessions, and we're in the midst of the most serious housing recession in decades," said Kermit Baker, the chief economist for the American Institute of Architects.

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First Friday - August 2009

Friday, August 07, 2009 - By Gate Arty

TODAY, is August’s version of First Friday & this month’s theme is once again, the popular “Dog Days of Summer.” For those of you that resemble your pooches, there is a dog/owner look-a-like contest. This contest will be held at FastFrame on South Kentucky Avenue. There will also be dog obedience skills competitions & training throughout the Downtown area.  

Other First Friday events:

• Local radio personality, Seth Mela from WLKF’s Mayhem in the AM will be in Munn Park.
• The SOFA KINGS will be jamming at the Garden Bistro between 6 pm – 8 pm.
• Classic Car Show on Tennessee Avenue.
• Lofty Ideas will be handing out free bandanas for the canines and samples of Italian ice.
• Arts on the Park will have an art reception between 6 – 9 pm with the theme, “Long Days of Summer.”
• Mitchell’s Coffee House will be featuring the photography of Jose Ramos.

See you there!

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Momentum for Home Sales

Tuesday, August 04, 2009 - By Gate Arty

The Natiional Association of Realtors has reported that the pending home sales index rose again for the fifth consecutive month. It rose 3.6% (94.6 from 91.3) in June from May. The pending home sales index tracks signed home purchase contracts and is considered a leading indicator of activity. What is driving this upward momentum? Simply put, distress sales (like short-sales) & foreclosures continue to drive real estate prices downward to levels where buyers can no longer ignore the values. Most people consider this a "once in a lifetime" buyer's market. Let's look at some of the positives: record low interest rates, $8000 tax government credit, large selection of properties available for sale, & discounted property values. The time to buy is NOW!

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