Good News on the Horizon
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For the fourth consecutive month, sales of existing homes rose. Many economists believe this is a signal the recovery is on its way. I’m not quite ready to jump on the recovery band wagon (especially when you consider that nearly 10% of all home owners are delinquent on their mortgage payments, meaning another wave of foreclosures and short sales might be in our near future), but I do believe we’ve entered a period of relative stability.
Sales of existing homes, as opposed to new construction, were up 7% compared to the previous month and 5% compared the the same time last year. That’s really great news. The sooner the stagnant inventory is bought up and cleared, the sooner we’ll see a true recovery.
What’s driven the sales increase? Affordability, low interest rates, and the first time buyer tax credit. Of course, the $8000 tax credit is set to expire at the end of November. With escrows now taking between 40 and 50 days, a first time buyer who wants to take advantage of the government’s generosity will need to be in contract by mid-September at the latest. It’s quite possible that the deadline, coupled with the normal end of summer rush, will create a mini-sales boom in September/November. That will be something to keep our eyes on.
Agent Profile
Jesse Knight specializes in residential real estate with a focus on first time home buyers in the Portland Metro market. Through face-to-face meetings and the targeted use of technology tools, Jesse provides complete representation. Jesse is your consultant, advocate and all around real estate professional.
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