1. Released: December 7, 2010 Commentary 2 The Numbers That Drive Real Estate 3 Recent Government Action 10 Topics for Home Buyers, Sellers, and Owners 12
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3. The Numbers That Drive Real Estate Home Sales 4 Home Price 5 Inventory 6 Mortgage Rates 8 Affordability 9
4. Latest Data Release: November 23, 2010 Source: National Association of Realtors Home Sales In Millions Home sales dropped slightly in October, compared with the previous month, despite a temporary moratorium on foreclosures, which have recently represented more than one third of sales activity. Sales were up 15% from July when the tax credit expiration caused a drop-off in sales. The most significant indicator of a market rebound, however, appears to be the October pending sales report. A 10.4% increase in pending sales, which measures homes under contract, signals stronger home sales activity in the coming months as the homes under contract close. First-Time Home Buyer Tax Credit Scheduled to expire November 30 Extended and Expanded Home Buyer Tax Credit Renewed November 7 Must have contract signed by April 30 Must close by June 30 Tax Credit Is Expired Gradual Recovery Without Tax Credit October ’ 09-’10 October ’ 08-’09
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8. Mortgage Rates 30-Year Fixed 30-Year Average – 8.90% 1-Year Average – 4.71% Mortgage rates hit another record low of 4.17% on November 11 after which they rose to close to 4.4% for the remainder of the month. Historically low rates have contributed to real savings for buyers who will continue to realize those savings for as long as they own the home. As overall economic recovery gains traction, rates must rise to keep inflation in check. Industry economist Lawrence Yun anticipate srates to be between 5.4% and 6% by the end of 2011. Source: Freddie Mac
12. Topics for Home Buyers, Sellers, and Owners Prime Time yo Buy 12
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14. Your Local Market Although it is important to stay informed about what is going on in the national economy and housing market, many different factors impact the real estate market in your own area. Talk to your KW associate for assistance interpreting the conditions in your local market . KW associates are equipped with the knowledge and information to help you navigate through the home-buying or selling process in this challenging market.
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