My Real Estate Blog

There is progress being made across the nation. Pending sales increased for the second consecutive month, that according to the National Association of Realtors and their latest Pending Home Sales Index.

Pending sales rose 4.3%, and were up in all regions except the Northeast, which saw a 2.9% decline.  Attractive affordability conditions from very low mortgage interest rates appear to be bringing buyers back to the market, however, the pace of a home sales recovery still depends more on job creation and an accompanying rise in consumer confidence.

Any sudden rise in interest rates could slow a recovery. It all has to do with inflation. If we start to see higher inflation, that could translate into higher interest rates. For now, however, affordability is near an all-time high.

In foreclosure news this week, we look to eRate's latest report showing that nearly one in every four homes sold in the second quarter of this year were in some state of foreclosure.  These homes sold for 26% or more below the average sales price compared to properties not in foreclosure. The largest price deficit was seen in Ohio, which saw foreclosure sales prices, on average, at 43% of normal sale properties.

The International Monetary Fund, or IMF, reports that "the most likely prospect for the U.S. economy is for a continued but slow recovery, with growth far weaker than in previous recoveries, considering the depth of the recession."