Pace of Home sales spikes up for June in Lake County, FL

The typically busy spring home buying season has sprung in Lake County which surpassed the 300 unit per month threshold topping out at 317 for the month of June, '09 as reported by the National Association of Realtors. Prior to this April had seen the best sales so far this year with 288 and the June sales blow away January's total of 187 sales. Sales are clearly trending upward with price and rate affordability playing a big role, coupled with the first time buyer tax credit incentive.

While sales of single family homes under $50k took a sharp jump it was sales ranging from $140k to $200k that saw the biggest increase. This reverses earlier trends showing the most activity from $120-$140k and suggests inventory at the lower levels is becoming scarcer.

Speaking of inventory, that's the real shocker! With only 4084 units listed for sale we now have the lowest inventory levels since January, '07 and with the increase rate of sales that reflects a 15.53 month supply, the lowest level since December, '06! Put in perspective as of January, '09- a scant five months ago- we had over 700 MORE homes listed for sale that represented an over 31 month supply!

The trend is now clear folks and if you are looking to buy, all indications are you missed the bottom. It's still a buyer's market and good deals can be found, although the best deals are seeing multiple offers and selling quickly.

So buyers need to be ready to move fast on a good deal and have financing arranged in advance of any offers to negotiate the best price. Speedy closings can also help tip the odds in your favor so having a strong team has never been more important. Government loan programs have become ever more popular as regulations continue to hamstring conventional financing. Appraisal and private mortgage insurance restrictions make FHA/VA/USDA loans the go to sources of financing, especially for first time buyers.

Lastly it is worth mentioning the pace of sales is likely to increase as the deadline for the tax credit nears. Although some buyers may be holding out for an extension or even an increase in the tax credit, it seems unlikely given the excessive levels of government spending that any increases or extensions will make it thru Congress. Once that is made clear look for all the "fence sitters" to jump into the market and further strain demand on what is fast becoming limited inventory. If you don't believe me just look at the numbers- as of June there are only 267 homes listed in the ever popular $100k-120k price range which represents an 8.1 month supply. Someone looking for a home in that price range is already seeing a lot of competition!

Gerry Suarez, Jr.

Your FHA Loan Pro!