Dec
02

Real Estate Market Showing Signs of Improvement

December 02, 2010

Huge news on the home front today.

1. Pending home sales for October went up.

2. The number of foreclosed homes sold in Illinois went down.

Let’s start with the local story:

RealtyTrac reported that 6,844 foreclosed homes were sold in Illinois during July, August and September of this year. That’s a 24.34 percent drop from the second quarter.

Foreclosure sales still accounted for 24.74 percent of all sales in Illinois during that third quarter of 2010, however.

“The expiration of the homebuyer tax credit in the second quarter created a substantial dip in overall buyer demand in the third quarter,” said James J. Saccacio, CEO of RealtyTrac. “Demand for foreclosures also dipped, but those who did purchase a short sale during the quarter were able to get an average discount of more than 32 percent — the highest average foreclosure discount we’ve seen since the fourth quarter of 2005.”

hand reaching out to shake.Illinois ranked fourth in the country for the highest foreclosure discount in the third quarter. The average foreclosure sales price was $142,314; a 41.34 percent discount from the average selling price of a home not in foreclosure.

At least there are good deals to be had.

Now on to the national news.

The National Association of Realtors on Thursday released the Pending Home Sales Index, an indicator for future sales, and reported a positive upward trend.

The index rose 10.4 percent to 89.3 based on contracts signed in October from 80.9 in September.

It’s the largest jump in pending sales NAR has seen since the group started keeping records in 2001.

The Midwest posted the biggest increase in the country, surging 27.3 percent in October to 81.7.

“The housing market clearly is in a recovery phase and will be uneven at times,” said NAR chief economist Lawrence Yun, “but the improving job market and consequential boost to household formation will help the recovery process going into 2011.”

Hopefully, we are on the right road.

Categories: Economy

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