Real Estate News

Pending home sales increased again in March, affirming that a surge of home sales is unfolding for the spring home buying season, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, rose 5.3 percent to 102.9 from 97.7 in February, and is 21.1 percent above March 2009 when it was 85.0; this follows an 8.3 percent increase in February. The data reflects contracts and not closings, which usually occur with a lag time of one or two months. Lawrence Yun, NAR chief economist, said favorable affordability conditions have been working with the tax credit. Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales, he said. Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing. Source: National Association of Realtors

When a condo developer goes into bankruptcy, owners of previously sold units can be left with some troubling questions. Here are the answers to a few of them: If the lender buys title to the property at the auction sale, a frequent occurrence, the law considers the lender just like it does other owners and requires that the lender pay the monthly assessment; The lender who buys the units also would be responsible for the taxes on the units he owns; A clubhouse or similar property would be jointly owned by all the owners of all units and taxed as part of the value of those units. Source: Charlotte Observer

The expiration of the home buyer tax credits won't deter optimistic households who believe the market is improving, according to a survey released by Prudential Real Estate and Relocation Services. More than 90 percent of those surveyed believe the home buyer tax credits have helped both first-time buyers and the overall housing market, but 65 percent say that end of tax credits won't reduce their personal interest in buying a home. Over the next five years, 79 percent expect real estate prices to increase and 20 percent expect prices to rise substantially. Only 12 percent believe prices will decrease. Among renters, 75 percent believe owning a home is a better long-term choice for them than renting. The majority of consumers also believe that homeownership is a good investment, with 75 percent saying it is better than stocks or bonds, 72 percent preferring it to mutual funds, and 74 percent saying it surpasses savings accounts. Source: Prudential Real Estate and Relocation Services, Inc.