Overlooked Signs the U.S. Housing Market is Turning
BALD HEAD – John Becker SPEAKS ABOUT FRANKLN NC REAL ESTATE MARKET RECOVERY
I’ve been saying for months now that recovery in the Franklin NC Real Estate market has already begun! My reason for this statement is directly related to what I’ve been watching occur in some of the nations hardest hit areas as regards real estate. As you read excerpts from this Ris Media article below, you will understand why I have been sounding the NO PANIC ALARM. My experience in retail sales in South Florida continually proved to me how American economic conditions played out not only on a national scale, but on international as well. When the money exchange conditions were right, Europeans would be dropping out of the sky enmasse to take advantage of the low low pricing on items that could be found in America. This phenomenon is no different in the housing market. International as well as national housing consumers are out in droves buying up properties distressed and undistressed alike. The result is that this buying frenzy is causing foreclosures to disappear quickly which is having a stabilizing effect on the overall market. How does this effect Franklin NC? Not all homes that are being sold are foreclosures, many are normal sales that are freeing up “MOVING CASH” for the sellers.. and TO FRANKLIN THEY COME! Moreover, Franklin NC real estate is not brimming with foreclosed properties, yes there are a few here, not many. And for “house hunters” in Franklin NC, the time could not be more ripe for buying as it is right now. Home prices in Franklin NC have come down to reasonable levels and buyers have a great inventory from which to choose. Mortgage rates are the lowest they’ve been in years.. It’s not going to get ANY BETTER THAN THIS… So now is the time to buy and savvy buyers and investors know this very well. THE WORST IS OVER, THE BOTTOM HAS COME AND GONE.
Spurred by markdowns up to 80% from market highs, first-time buyers and investors both American and foreign descended en masse in the last three months on San Francisco’s hardest-hit hinterlands as Wall Street and the economic climate improved. They’re picking clean the Delta region’s banked-owned inventory as soon as properties hit the market and are engaged in unprecedented bidding wars even on short sales.
The panicked buying – fueled by buyers’ fear they’ll miss out on fire-sale prices – belies the doom-and-gloom evoked by recent reports of rising mortgage delinquency rates and foreclosure activity. It is one of several overlooked signs the U.S. housing-market turnaround has started in the nation’s hardest-hit markets, which is critical to driving an overall recovery:
Yet the number of pending sales of existing U.S. homes took a surprising upswing in April, rising 6.7% in the biggest monthly gain in more than seven years, the National Association of Realtors reported Tuesday. That increase lags the 9.2% jump in October 2001, but that spike owed to buyers temporarily putting off home shopping following 9/11. See the latest data on pending home sales.
And in an overlooked report that belies the first-quarter delinquency numbers, defaults on privately insured mortgages – where borrowers are more than 60 days behind – fell 3% in April and were down 24% from a record 106,482 in February, the trade group Mortgage Insurance Companies of America reported Friday.
Most important for gauging the strength of the nationwide market is how conditions are improving in the most-depressed regional markets.
With those markets now stabilizing, banks are no longer anxious to dump real-estate owned properties, as houses in their foreclosure portfolios are called, fearing they’ll get appreciably less three months from now for their foreclosed properties.
As a result, they’ll be more judicious about the pace at which they release foreclosures onto the market. The new goal: To maximize the value of supplies in hand rather than unload it helter-skelter and torpedo the housing market like they did while they were shell-shocked by the devastation they’d wrought.
With the banks themselves now somewhat more stable, they’ll also be less likely to want to part with their “toxic assets” knowing the most-scorched, still-serviceable mortgages will be the most valuable on a credit-risk markup once the economy recovers. In fact, the price stabilization in the most-depressed U.S. markets will allow a clearer valuation of the toxic assets we now all hold by virtue of bank bailouts – a modicum of certainty that will hasten the overall recovery.
Homeowners in most of America know by their own property’s value that the spike in U.S. median home values was driven in considerable measure by soaring prices and volume in major markets, especially in California, Florida, Nevada and Arizona. By virtue of their climates and economic-growth rates, those four states have been on the extremes of the U.S. boom-and-bust housing cycle since the 1950s.
You can’t discount how critical an upturn in those states will be, considering they account for 46% of foreclosures nationwide. If foreclosures there are more quickly consumed as they’re starting to be now – fueled in part by foreign buyers who recognize their value – we’ll all reap a return on our bailout money a lot faster. Read the full article here
Overlooked Signs the U.S. Housing Market is Turning
Read more: click here to read the full article by Chris Plummer
Franklin NC Real Estate – Macon County NC- Otto,NC
John Becker / Bald Head – your gateway to Paradise in the Smokey Mountains of Franklin, NC. John Becker / Bald Head, provides a superior level of informed, professional real estate service to Buyers and Sellers of real estate in Franklin NC, Macon County, and the Great Smoky Mountains. You can find every bit of information you require for your Franklin, NC real estate endeavor with John Becker / Bald Head Exit Smokey Mountain Realty. Call 828-506-3719..