Housing Market And Real Estate Prices

Housing market

When the real estate properties are being held by the house owner then they will become a good investor in this society. The owner of the properties are establishing by the house maker. In this situation housing market is developing. The market prices of the real estate events is high. We have to analysis about that the market prices and rates. Then it will be observed by that house buyer when they have to know about how much the rate will be increased. Short sales amounted to nearly 110,000 in the first quarter of 2012, an increase of 25% from a year ago, making up 12% of all homes sold during the quarter. In short sales, borrowers who owe more on their mortgages than their homes are worth, agree with the bank to sell their homes at the lower market value. In return, the bank agrees to eat the loss. With some 30% of mortgage borrows underwater, short sales are becoming the favored way for banks to unburden properties in default.

As a rule, banks usually receive 20% more for a short sale than they would get for a foreclosed home. Another advantage is that short sales usually close much quicker than foreclosed homes, which can sometimes take years. During that time property taxes, insurance, upkeep and other expenses buildup. During the first quarter, short sale homes sold for an average price of $175,461, the lowest level since Realty Track began tracking foreclosures in 2005. It took an average of 306 days to complete a short sale during the first quarter, in comparison to the 370 days for a foreclosure.”Lenders are approving more aggressively priced short sales, which in turn is resulting in more successful short sale transactions,” Moore noted. Meanwhile, sales of properties repossessed by the banks, called REOs, fell 15% year-over-year to 123,778, encompassing 14% of all sales during the quarter.

Mortgage Rates

Record low mortgage rates have done little to help the struggling housing market. For the fifth consecutive week, the average rate on a 30-year fixed mortgage fell to a record low. The rate dipped to 3.75% in the week ending May 31, according to mortgage giant Freddie Mac in its weekly report. It marked the lowest in Freddie’s records dating back to 1971.

The average rate on the 15-year fixed also hit a record, slipping to 2.97% from 3.04% a week earlier. It is also the first time the rate rested below 3%.While definitely good news for the ailing housing market, the historic low rates have not had much of an impact in igniting sales.

Here the real estate marketing prices and housing marketing are increased so much. We have to ready for every things and it will be the best for us.

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