Here’s a hopeful article from DSNews.com, a news source aimed at the mortgage servicing industry: Home Purchase Activity Hits Six Month High
The meat of the article is that mortgage applications for home purchases in the third week of November reached their highest numbers since May. Michael Fratantoni, MBA’s (Mortgage Banker’s Association) VP of research and economics, said “The level of purchase applications on a seasonally adjusted basis is now at its highest level since the expiration of the home buyer tax credit.”
This is very encouraging news.
We are seeing similar results on a local level as well:
This is the November, 2010 pending and sold activity for Eagle Rock, 90041 zip code as of November 30, 2010:
Here are the active listings currently on the market in 90041:
This is the year to October information;
One item of interest is that the List Price/Sales Price ratio had been drifting down into the 90 percentiles in the last few months, but in November it was back over 100%. Also, active inventory is drifting down again as these properties are selling at a greater rate than they are coming on the market. Since I have a few new listings hitting the market this week, I am really glad to see these numbers!
What’s going on?
It looks like the combination of historically low interest rates and the slight uptick in consumer confidence is finally having some effect on our market. Also, prices have come down a bit as sellers decide that it might not get better for a long time and price their homes to get offers. But maybe it’s just that a lot of people have decided they want to be in their new home by the end of the year. That’s a goal that is still possible if you hurry!