Homes Sales Take a Leap!!

Well, it is not a leap year according to the calendar, but it looks like February decided to make it a leap month anyway. Existing home sales took a surprising leap in February and offered a possible sign the real estate market may be stabilizing. The National Association of Realtors said sales of existing homes grew 5.1 percent to an annual rate of 4.72 million last month, from 4.49 million units in January. It was the largest monthly sales spike since July 2003, with first-time buyers accounting for about half of all transactions.

We may continue to see small increases. The figures from February do not reflect the new $ 8,000 stimulus for first time home buyers. This credit is helping first time home buyers feel a little more secure in taking the leap into home ownership. One of the biggest things holding the market back is many are unsure of their job situation and fear purchasing a home and then losing their jobs. The tax credit is helping them feel more comfortable with making that big purchase.

More good news is that in some areas like San Diego and Orange County, CA, sellers' asking prices are starting to rise again. This may be an early indication prices are starting to stabilize in the hardest hit parts of the country. As more people are starting to buy again, the big difference is they are avoiding the riskier loans. This will help keep the market stable as we climb our way back out of recession.

There is more great news for buyers. They are seeing the most attractive prices we have had in years. Add to that, interest rates are at historic lows, with the national average for a 30-year fixed rate mortgage now at 4.98 percent. The Federal Reserve two weeks ago, moved to reduce already low rates by printing $1.2 trillion and pumping it into the economy through the purchases of mortgage-backed securities and Treasury debt. With spring upon us and summer on the way, it looks to be a good year for first time home buyers!!

If you are ready to "leap" into your own home and don't want to leap before you look, we will be glad to help!! Contact Sandy's Team at (225) 677-SOLD or email info@sandyco.com. We are here it help you in East Baton Rouge, Livingston Parish, and Ascension Parish.