New US Home Sales Up in September, Existing Homes Sales Fall 3%
This month's market statistics for US real estate reveal a growing interest in homes purchased at prices that reinforce a healthy economic trend. According to the National Association of Realtors, previously owned homes which account for the majority (about 94%) of the total US housing demand, fell 3% to a 4.91 million annual rate in September. About 30% of these September sales were cash deals, with another 30% listed as distressed properties, which percentage includes foreclosures and short sales. This may indicate that investor confidence is cultivated when budgetary concerns are addressed through economic cost adjustments derived when potential investors identify benefit from new home comparison shopping and bargain shopping created through homeowner angst.
While President Obama has unveiled a plan which encourages distressed homeowners to refinance any mortgage, regardless of the strength of the property's value or the lender's contribution, homeowners and qualified investors should consider the idea behind any purchase, and whether this should be addressed prior to making changes which affect investment strategy.
New home sales rose 5.7 percent to a 313,000 annual pace, as reported on Bloomberg, a sales pace weaker than the 323,000 sold in 2010. “Up slightly is faint praise,” says Robert Dye, chief economist at Comerica Inc. in Dallas, "we’re still under the black cloud of high foreclosures and depressed prices. We’re still bouncing along the bottom in terms of new homes.” Although, now with new buyer incentives, discounts and reductions, these homes should remain attractive to the astute investor shopping for specific amenities.