Maria Wells - Lifestyle Realty Group

January Housing Statistics for Martin County, Florida

Prices are remaining virtually stable with small increments of fluctuation. Because prices are NOT dropping by significant amounts, more homes have been placed on the market by the sellers who have wanted to sell their property for a while and now are willing to accept today's prices.

Sales are indicating a decline, however, there was still the first time home buyer incentive program this time last year that "spurred" on more sales providing a false reading on the market.

Condominium sales traditionally lag residential and since they were slower to respond to sales last year, they are now showing an increase in sales, catching up to where the residential market was last year.

For more information regarding existing home sales for Martin County, visit us at www.lifestylerealtygroup.com or call us today at 772-781-2345.

The Chart Data was released by our local MLS and Realtor Associations.

Martin County - Single Family Homes

• Sales are up 32% from last month

• Median price has increased by 6%

• Absorption Rate has decreased

Martin Condos

• Sales re up 20% from last month

St. Lucie - Single Family Homes

• Sales are up 25% from last month

• Median price is remaining stable

• Absorption rate decreasing

St. Lucie Condo sales

• Are up 11% from last month

• Median price has increased 27% from last month

• Absorption rate is decreasing

Our single family housing numbers reflect we are taking two steps forward and one stepback in the process of recovery when comparing sales year to date. In St. Lucie from September 2010 to October 2010 the sales decrease is modest at 3%. The good news is the median price has remained stable throughout all of 2010. It will take all economic factors for the housing market to have a strong lift and new job creation is the number one priority.

In the latest industry outlook from the National Association of Realtors® (NAR), Chief Economist Lawrence Yun said several factors are slowing the housing market's recovery, including the recent foreclosure moratorium. "Nonetheless, there appears to be a pent-up demand that eventually will be unleashed as banks resolve their issues with foreclosures and the labor market improves," he said. "However, tight credit and appraisals coming in below a negotiated price continue to constrain the market." Yun called for a gradual rise in home sales as buyers respond to historically low mortgage interest rates and favorable affordability conditions.

Here is a summary of sales and median prices throughout the Treasure Coast:

For almost two years there was a tax credit available for first time home buyers along with historically low housing prices and mortgage rates, which attributed to higher sales volume. We still have two of the three major factors available for today's buyers, low prices and interest rates. The former tax credit encouraged many buyers to get off the fence and purchase. The last 60 days of recorded lower sales volume suggest a more typical housing market and reflects the loss of the housing tax credit and our area's high unemployment.

The housing sector faces a long recovery process, due in part to slow job growth and the still-fragile economy, according to NAR's latest industry outlook. "Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery," said NAR Chief Economist Lawrence Yun. The pace of sales has slowed since May, following the expiration of the federal homebuyer tax credit, Yun said, who predicted this "pause period" likely will last through September. "However, given rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs," he said.

The interest rate for a 30-year fixed-rate mortgage averaged 4.43 percent in August, down from the 5.19 percent averaged in August 2009, according to Freddie Mac.

There will be lots of predictions, interpretations and opinions during this recovery from many sources. I encourage you to not jump to conclusions on a month or two trend, but to ask a Realtor®, the best resource to assist you in the process of buying or selling for a true picture of what is happening in your neighborhood.

Following a sharp drop in the months immediately after expiration of the homebuyer tax credit, pending home sales have modestly risen, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index (PHSI), a forward-looking indicator, rose 5.2 percent to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June; it's 19.1 percent below July 2009 when it was 98.1. Pending sales data reflects contracts and not closings, which normally occur with a lag time of one or two months.

"Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery," says Lawrence Yun, NAR chief economist. "But the recovery looks to be a long process. Homebuyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers. For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity."

On the other hand, homes have not been this affordable in recent memory. "Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Fed's very accommodative monetary policy," says Yun. "The loan underwriting standards are tighter, but homebuyers can improve their chances of getting a loan by staying well within their budget."

The PHSI in the Northeast rose 6.3 percent to 62.5 in July and is 21.1 percent below a year ago.

In the Midwest the index increased 4.1 percent to 66.7 and is 25.7 percent below July 2009.

Pending home sales in the South rose 1.2 percent to an index of 86.3, and are 15.6 percent lower than a year ago.

In the West, the index jumped 11.6 percent to 95.0 and is 17.6 percent below July 2009.

The national index had fallen 29.9 percent in May and another 2.8 percent in June.

Article courtesy of Florida Realtors, photo courtesy of Bing images