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Thursday, April 9, 2009

Home Sales: Some Welcomed Signs of Life

From Realtor Magazine Online, Daily Real Estate News April 9, 2009

The hardest-hit housing markets -- Florida's Gulf Coast, California's Inland Empire, and Las Vegas, among others -- experienced a more than 80 percent jump in home sales during the year-over-year period ended in February.

In Cape Coral, Fla., which had the highest foreclosure rate in the nation in 2008, there are even bidding wars. Experts say bargain foreclosures, low interest rates, and the $8,000 federal tax credit are helping first-time buyers and investors.

These buyers also have an advantage because they do not have to sell a current home to close the deal. However, experts note that the housing market will not recover until banks loosen their lending standards; and these markets could experience another downturn if interest rates rise and the tax credits disappear.

Source: Business Week, Christopher Palmeri, Maria Der Hovanesian, and Gopal Prashant (04/09)

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