September Report

In today’s paper, The Ledger, Polk County’s September home sales is a front page story.  To view it, click here.

The number of existing homes sold was 336, down from 395 in August and about the same as last year, 331.  The “news” was the median price was significantly up, for the first time since  the recession started.  I agree with the reasons given in the article, that there are fewer foreclosures on the market.  I monitor the market closely, as I have clients looking for investment property.  It’s likely true that the number of foreclosed houses on the market should increase as lenders resolve the “robo-signing” issue.  For the typical homeowner, the market value of their home did not go up.  Probably the best that can be said is that it may not have decreased significantly in the past month.

In my view, we are still bumping along the bottom.  A leading indicator and predictor of near-term home purchases (wthin the next two  months) is the “Purchase Index”, compiled by the Mortgage Banker’s Association. This index is currently at its lowest level since 1996.

I do expected the market to improve starting in the early part of 2012.  A lot of political attention is being paid to the housing problem, with so many people ‘underwater’ on their mortgages, and especially with 2012 an election year.  Sometimes legislative actions mess things up more, though. If the market is righting itself with the help it has had, it might be prudent to leave well enough alone.

However, the FHA might have something in its toolkit that could be beneficial.  From a recent Washington Post article,  ”…. (Federal Reserve Chairman Ben) told the caucus that some relief could come next week when the Federal Housing Finance Agency announces new plans to try to enable homeowners who are under water to refinance.”  As long as this strategy isn’t as overly burdened with the rules that HAMP and HAFA endured, which rendered them ineffective, a way to re-finance underwater mortgages that makes sense for both the lender and the homeowner would be welcome.

All of this can have an impact on Polk County.  Check back often as I will try to keep you informed of major events.

I have been closely involved in real estate sales for a long time, both residential and commercial.  Contact me to see if I can help you, whether buying or selling.