EXISTING HOME SALES ON THE RISE

According to a National Association of Realtors report released today, after many stops and starts in February, sales of existing homes rose 3.7 percent in March from the month before, while
settled property volume of existing single-family homes, townhomes, condominiums and co-ops declined 6.3 percent compared to March 2010.

Lawrence Yun, NAR's chief economist believes "With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain -- primarily because some buyers are finding it too difficult to obtain a mortgage."

He said the upward trending in monthly existing-home sales suggests the real estate market is "clearly on a recovery path."

The median price for existing homes nationwide fell 5.9 percent year-over-year in March, to $159,600. Foreclosure or distressed properties, usually sold at well below the average market price, made up 40 percent of sales last month, compared with 35 percent in March 2010.

Its still a great time to consider purchasing a home with interest rates still very very low and inventory is still very very high AND with motivated sellers.

Real Estate Pricing Trends - Helpful Or Harmful To The Sale Of Your Home?

Buying or Selling Because of Published Real Estate Trends

If you are considering buying or selling, you are probably noticing price fluctuations in your area. The question is how important a role these movements should play in your decision to buy or sell.
The first rule of real estate is, of course, location, location and location. The second rule many believe has to do with getting the pricing right. Specifically, is the real estate market trending upwards or downwards? Considering pricing trends is a smart move, but using them soley to price out your home is not.

Why are real estate pricing trends so big a deal to some? Well, it all has to do with getting the best possible deal. For buyers, the goal is to buy property at the bottom of the market. The buyer can then rely on at least SOME kind of appreciation when the prices eventually start rising again. Likewise, sellers are looking to sell when property prices are at at their highest, which maximizes the profit in the property being sold.

While pricing trends are important in some respects, they are not nearly as critical as people think. First off, it is important that you focus on the correct trend. National price trends up or down are not all that important. The local price trend may differ. If prices are dropping 10 percent on average across the country, it doesn't really matter to you if prices are up 5 percent in your area for the same period. Think locally, not globally in this respect.

As a home seller, trying to outsmart the real estate market can be a catch-22. Yes, you want to sell at the optimal time to maximize your profit, but there is often a problem with this way of thinking. Once you sell, you are probably going to want to buy another home to live in immediately. If you sell at the top of the market, you are also going to buy at the top of the market. In short, it tends to be wash transaction. You could rent for a bit until prices go down, but most people move home to home as quickly as possible. This makes pricing trends pretty irrelevant.

When all is said and done, trying to time the real estate market can be a futile gesture. You can do so in a general way, but you will never buy at the absolute bottom of the market or sell at the absolute top. Real estate has always appreciated over time, so focus on location and try not to get too caught up in the hype of pricing trends.

Author: The Frani Morrione Group at Keller Williams 215-646-2088