My Real Estate Blog

The latest report from the National Association of Realtors shows that the sale of existing-homes was on the rise in March. This figure was up 3.7% from February.

Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path. “With rising jobs and excellent affordability conditions, I project moderate improvements into 2012. For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows.

Tight lending has made it difficult for many would-be buyers to enter the market. Although home sales are coming back without a federal stimulus, sales would be notably stronger if mortgage lending would return to the normal, safe standards that were in place a decade ago – before the loose lending practices that created the unprecedented boom and bust cycle.

According to a parallel NAR practitioner survey, first-time buyers purchased 33% of homes in March, compared with 34% of homes in February; they were 44% in March 2010. Last year's figure was most likely elevated thanks to the first-time home buyer tax credit.

The NAR also reports that all-cash sales were at a record market share of 35% in March, up from 33% in February; they were 27% in March 2010.

And no news to most, distressed property sales made up 40% of the market, up from last year's 35%, and up even further from the normal average of 20%.