Is the housing recovery underway?

Sales of existing homes rose for the second month straight.The data shows a 10% gain over last months sales. Economists had foretasted a rise in annual sale of 4.25 million units up from 4.15 million. However the foreclosure halt that took place in all 50 states last month may have a negative impact on next months reports that could skew the data. Overall though many economists say the housing market recovery is underway.

Existing home sales climbed for the second month in a row in September, fueling some hope that a housing recovery is underway.

Economists had forecast sales to edge up to an annual rate of 4.25 million units, according to consensus estimates from Briefing. com.

While some economists say a housing recovery is underway, a foreclosure moratorium in October may have a negative impact on next month’s report.

While Tuesday’s report offered a glimmer of hope for housing, home sales remained 22% below this year’s peak in April, and 19% from a year earlier. “Despite having unbelievably great interest rates and low housing prices, the housing market is stuck in the mud right now,” he said.

The inventory of homes on the market edged down 1.9% in September to 4.04 million units, but that number is still “unbelievably high,” Thomson said.

About 35% of homes sold during the month were in foreclosure, according to Realtors.com.

Colorado’s foreclosure filings have dropped almost 3% in September from the same time last year according to RealtyTrac.

Colorado had a little over 6,000 properties filing for foreclosure last month, which is lower than the national rate. Although between August and September 2010 foreclosures rose 3% in Colorado.

Currently Colorado is ranked 12th among the all the states during September and during all of 2009 and the first six months of 2010 it was ranked 10th.

Foreclosure filings are just the initial documents filed, which are used to begin the foreclosure process. Foreclosure can end in 2 ways: one being where the homeowner settles with the lender or the other way is the home is sold through a foreclosure sale and the owner loses the property.

There were a total of 347,420 homes nationwide with foreclosure filings in September 2010, up 1.1 percent from September 2009 and up 2.53 percent from August 2010 according to RealtyTrac’s numbers.

The division of housing said new foreclosure filings in Colorado fell 10.1 percent from the same month of 2009 but were up 15.6 percent from the previous month according to the most recent official state report on foreclosures in Colorado.

Some very curious things are happening in the market right now. Here and summary of what Bank of America is doing. This is creating major waves across the nation.

Here is a summary of an LA Times article:

Bank of America is moving forward with halting foreclosure sales in all 50 states as the nation’s largest bank said it was widening its examination into how it handled home foreclosures.

The move by the lender might put pressure on other banks to declare foreclosure moratoriums nationally.
“Bank of America did the right thing today by stopping foreclosure sales in all 50 states,” said Assemblyman Ted Lieu, who has written a series of mortgage-related bills. “Other major lenders should also halt foreclosures in states such as California.”

Kevin Stein, associate director of the California Reinvestment Coalition, said the move by the bank indicated that there were widespread problems with the way banks were conducting foreclosures.

Three major banks — Bank of America, Ally Financial Inc. and J.P. Morgan Chase — had suspended foreclosures in the 23 states that process repossessions through courts. Bank of America hasn’t halted all foreclosure proceedings, however. “Our ongoing assessment shows the basis for foreclosure decisions is accurate,” the bank said.

Full article from LA Times

What are your thoughts on what this will do to Colorado’s real estate future?

All I can say is, finding the right real estate agent can make all the difference in your home buying process, especially if you’re a first time home buyer new to the whole process. I remember back when my wife and I began looking for our first home here in Denver Colorado, this was before I entered into the world of selling real estate. By the second time the Realtor took us out looking at houses I knew that being a real estate agent did not take a rocket scientist. It is as if she did not hear a word we were saying. She kept showing us houses that did not meet our criteria. Obviously, finding a real estate agent doesn’t take a rocket science either but I think finding a good one might. You can find your basic Realtor on the Internet, the paper, on bus benches, in the Yellow Pages, I’m sure you probably have one or two living on your street. But, to find a real good real estate agent you might want to dig a little deeper. I have a few recommendations. First, choose a real estate agent who closes at least three through five transactions every month. Do you really want someone who is struggling to make ends meet and is more concerned about getting their paycheck then finding you the perfect house? Probably not. Second, the average real estate agent closes less than four deals per year, which means they write one contract every three months. Considering that the Colorado real estate contract updates every single month, how is that agent supposed to know every change being made if they are not actively using that contract? So again, picked in agent who closes lots of deals. And finally third, you want an agent who specializes in the area you are looking. Denver is becoming so large that it is very difficult for an agent to know everything about every part of town especially school systems, entertainment, recreation and shopping.
These are probably the three most important criteria for the first time homebuyer in Denver Colorado. So in conclusion, choose well and happy home hunting!

If you purchase and close on a home by December 1, 2009 the government will give you a tax credit for $8,000 which does not EVER have to be paid back! That’s right… if you are a first time buyer and are wanting to buy a home this year than this incentive is for you.

There’s also great news for those who had already purchased a home in 2009. The bill that President Barack Obama signed is retroactive for those home buyers who bought earlier in the year.

If you are a first time home buyer or know of one, please call me to see how you can take advantage of this tax credit and become a proud home owner this year!

Below is a chart I’m posting from the National Association of REALTORS® This should help everyone understand the benefits more clearly: