Strong Rebound Seen for US Home Sales

Strong Rebound Seen for US Home Sales - Real Estate * US * News * Story - CNBC.com.

This is great news for the home buying industry. However, I am going to issue a word of caution. Many of these homes that are selling are of short sale and foreclosure type. What is going to happen when this ends. The values of regular home are still down. The average home that was bought in the last three years is pretty much under water or close to it.

I have many clients who bought 15-20% down and now they are basically valued at what they are owing the mortgage company. These people could not possibly sell their homes. Never mind the people that put 0-15% down, after paying the costs selling they would way to far under water.

Basically what I am saying is lets not get to exited about what is going on yet, it is moving in the right direction. I talk to some realtors and mortgage bankers and they think this is going to last for ever. Look what happened the last time we thought that way.