Real Estate Matters

According to a recent statement by the the Florida Association of Realtors (FAR), a modest gain in the level of home sales is possible over the next couple of months, and an improvement is forecast for the second half of this year as more buyers are able to access affordable mortgages, according to the latest forecast.  FAR stated that the Pending Home Sale Index rose 6.3 percent to 88.2 from a reading of 83.0 in March, which is the highest index figure since last October.  Lawrence Yun, chief economist for the National Association of Realtors (NAR), said that pending sales contracts have picked up notably in areas undergoing significant price drops. "Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it's unclear if they are investors or owner-occupants," he said.  "Sharp price reductions are leading to a quicker discovery of price equilibrium points.  The West is already seeing year-over-year gains in pending contracts." 

Financing is still attractive for qualified buyers.  Jumbo loans are a big bargain.  A new law temporarily allows Freddie Mac and Fannie Mae to buy mortgages as big as $729,750, which is keeping the jumbo rates down, however the deal disappears at the end of this year.  Interest rates remain low but according to Celia Chen of Moody's Economy.com predicts rates will hit 7 percent in mid 2009, so the time is now to drive a hard bargain for a home you really love. 

Cheers,

Bill