On a national level, the U.S. housing market took a dip in 2007.
On Friday, the government reported that new-home sales plunged by 9 percent in November to a pace of 647,000, the lowest in more than 12 years.
The median price of a home sold last month was $210,200. That marked a 3.3 percent drop from a year ago. It was the fifth biggest annual decline on record. The median price is where half sell for more and half sell for less.
On Wall Street, the bump up in nationwide home sales failed to ease investors’ fears about the economy’s outlook. The Dow Jones industrials tumbled 101.05 points to close at 13,264.82. For the year, the Dow managed to post a respectable gain of 6.43 percent.
By region of the country, sales were mixed.
Existing home sales jumped 10.3 percent in November from October in the West. They were flat in the Midwest. However, they fell by 2 percent in the South and by 3.3 percent in the Northeast.
Here is an update regarding the Outlook on the Denver home Housing Market.
Historical Housing Statistics and Market Update for Denver Colorado
The inventory of unsold homes in the U.S. in November was 4.27 million homes. At the current sales pace it would take 10.3 months to exhaust that overhang.
“Inventory is still high and further reduction in prices may be required in some areas to induce buyers back into the market,” said the association’s chief economist, Lawrence Yun.
The Mortgage Industry
A dip in 30-year mortgage rates in November probably helped give nationwide existing-home sales the small boost last month, the association suggested. Yun thought the small increase could be taken as a sign that the market might be stabilizing. That said, previous signs of stabilization earlier in the year have been dashed.
A credit crunch which took a turn for the worse in the summer has aggravated housing problems. It has made it more difficult for people to secure financing to buy a home.
The housing market has been suffering through a severe slump following five years of record-breaking activity from 2001 through 2005. Sales turned weak as did home prices. The boom-to-bust situation has increased dangers to the economy as a whole and has been especially hard on some homeowners.
Foreclosures have soared to record highs. A drop in home prices left some people stuck with balances on their home mortgages that eclipsed the worth of their home. Other home buyers were clobbered as low introductory rates on their mortgages jumped to much higher rates, which they couldn’t afford. Those who may find themselves in this situation are encouraged to read the following article.
Watch Video Regarding Colorado Foreclosure Process Learn more about Foreclosure Scams
“A significant number of mortgages reset in early 2008 will likely increase delinquencies and foreclosures driving prices lower and pushing buyers away,” predicted Benjamin Reitzes, economic analyst at BMO Capital Markets Economics. “This could get even worse before it gets better.”
To help bolster the economy, the Federal Reserve has sliced a key interest rate three times this year. Many economists are predicting the Fed will lower rates again when it meets in late January. Yun said he preferred to see the Fed make one big rate reduction at that time, rather than make a series of modest, quarter-point cuts.
The new-home numbers are thought to give a more current account of the health of the housing market because they are recorded when a contract is signed. The existing home figures lag behind because they are based on contract closings, many of which reflect deals negotiated months earlier.
If you are considering a new home purchase with a builder. You need to be aware of the shell games new home builders are playing to entice people to buy their homes. Here is an article I consider a must read.
Can a Builder Require me to use the Builders Preferred Lender Learn more about Games Builders Play
REAL ESTATE
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Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.
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