Huntsville Alabama Houses Blog

Sales of Existing Homes Down 12.8% Nationwide

Well, the verdict is in: Sales of existing homes dropped 12.8% in 2007 compared with 2006. While this may sound dismal, 2007 sales were still the 5th highest on record.

For the record, existing home sales include non-newly constructed single family home homes, condos, and townhouses.

So, how do sales in Huntsville compare with national statistics? Let's take a look:

According to our MLS statistics report generator - which is woefully limited in what we can search on - the city of Huntsville faired well. 3052 homes were sold in 2007 compared to 2842 in 2006. Congratulations, Huntsville! You posted a 7.4% increase in sales!

Todd

www.huntsvillealabamahouses.com

Good News for Buyers!

In an unprecedented move in a special session, the Fed dropped a key interest rate by 3/4 percent. The move is an attempt to entice buyers back into the market and provide relief to homeowners with adjustable rate mortgages. The Fed is hoping this move will encourage people to begin buying homes and slow down the growth of foreclosures. European and Asian markets responded by saying, "Too little, too late".

Regardles of the timing of this rate drop, the news is good for buyers. Interest rates on new mortgages will drop significantly saving you hundreds of dollars per month on your mortgage payment.

My advice? Buy now. Sellers are making more and more concessions to entice buyers, and there are more houses to choose from. Simply put, it's a buyer's market. If you've been contemplating purchasing a new home, now be your time to start that home search. Happy hunting!

Todd

www.huntsvillealabamahouses.com

Bad News for Countrywide Means Good News for Buyers

Countrywide lends and services about 1 in 7 home loans in the United States, making it the largest lender and largest mortgage servicing company in the US. This month, Countrywide disclosed its latest figures on its loans: 7.2% of its existing loans are now over 60 days due, up 2% from last month. Nearly all of those are adjustable rate loans which have seen several rate hikes over the last year or so.

Simply put, lenders like Countrywide gambled on several things when they began pushing these adjustable rate mortgages (ARM). The primary thing they gambled on was "as interest rates rise, so will incomes." Unfortunately, this has not been the case. Interest rates have increased quicker than income.

Lenders also failed or ignored a basic truth of human psychology: Given an increase in income, the typical person will spend the money for something they want. People rarely use an increase in income to pay down debt. The tax rebate of 2001 is a great example of this. Government statistics show more than 2 out of 3 people spent the money within 6 months. Less than 1 out of 3 people used to money to pay down debt, save, or invest.

But, don't be discouraged. What's bad for Countrywide is good for you. As these foreclosures enter the market, you can save thousands of dollars on your next home purchase. Lenders will be anxious to rid themselves of these assets as federal law mandates a maximum number of assets a bank can hold at any given time.

Sure, these properties will be sold "as-is". But, with the right agent and right home inspector, you can save yourself thousands of dollars and only have to put in a small amount of "sweat equity" to get your new home just the way you want it.

Todd

www.huntsvillealabamahouses.com

In one of my previous posts, I commented that the city of Huntsville provides up to $5000 in down payment assistance. I recently contacted the city and was surprised to learn just how easy it is to qualify and receive this money. They sent me a flyer in PDF format that details the conditions of the program. You can find it here or navigate to http://www.huntsvillealabamahouses.com/DAPFlyer.

Happy Hunting!

Todd