| The value of homes seems to be stabilizing. On a | | | | to the diminishing inventory of foreclosures and more |
| national level home prices were up nearly 60% in the | | | | "normal" or non-distressed homes were purchased. |
| first quarter of 2010 vs. 2009. Arizona, one of the | | | | The tax credit played an important role in the |
| hardest hit in the housing crisis was up 9% in the first | | | | stabilization of prices and some believe that now that |
| quarter over last year. The metro cities that had the | | | | the tax credit is not available we will start to see |
| biggest increases were of course, the ones that | | | | another decline. This could really affect the first-time |
| missed out on the housing boom of 2004-2005. | | | | home buyer. |
| Distressed sales such as short sales and | | | | The storm is not over yet and there are many |
| pre-foreclosures are still a major concern. Some other | | | | issues that lie ahead before the housing market |
| important factors to keep an eye on are the job | | | | recovery. One is job growth. We cannot buy real |
| market and the number of bank inventory homes | | | | estate if we are unemployed. Low interest rates also |
| which have not been released in the marketplace and | | | | will have to remain stable. |
| pre-foreclosures. | | | | One of the most significant concerns is the time |
| Las Vegas which led the country in number of | | | | frame for processing short sales. This is especially |
| foreclosures for most of last year still showed a | | | | true in Arizona where 6 out of 10 homes are short |
| decline in market values of approximately 12%. The | | | | sales or pre-foreclosures. Some encouraging news is |
| median price of a home fell from $155,300 to | | | | it does appear that this time process does seem to |
| $137,000. | | | | be moving a little faster. Some short sales are getting |
| Now this is a real shocker. What many might consider | | | | bank approval within 2 weeks. This was unheard of a |
| the unemployment capital of America lately, Akron, | | | | few months ago. |
| Ohio; Almost 12% of their workforce was | | | | We have to continue to be optimistic that jobs will |
| unemployed in March 2010. The housing market rose | | | | soon be in demand and unemployment will decrease, |
| 90.2% in the first quarter as compared to the first | | | | lenders will loosen their strict requirements for home |
| quarter of last year from a median price of $95,000 | | | | ownership and additional home buyer incentives will |
| from $50,000 last year. This increase was mainly due | | | | continue to entice the home buyer. |