According to the National Association of Realtors, the organization that keeps track of such numbers, existing home sales (the type of homes that you and I live in) dropped by 7.2% in January 2010.  Although the numbers are up slightly from a year ago and prices are starting to stabilize, the report also points out the difficulty that moderate income home buyers have in obtaining a mortgage. The article quotes Vicki Cox Golder, President of the National Association of Realtors:

“First-time buyers and others who need a mortgage are increasingly losing out to all-cash investors for the best bargains in many areas, particularly for foreclosed homes where cash is king,” she said.

Lawrence Yun, Chief Economist of the National Association of Realtors points out:

“Most of the completed deals in January were based on contracts in November and December. People who got into the market after the home buyer tax credit was extended in November have only recently started to offer contracts, so it will take a couple months to close those sales,” he said. “Still, the latest monthly sales decline is not encouraging, and raises concern about the strength of a recovery.”

Believe it or not, the National Association of Realtors really tries to put a report like this in the best light.  But the facts are the facts.  It really doesn’t look good for a strong, robust or quick recovery for the housing market.  Rising mortgage interest rates, difficulty home buyers have obtaining mortgages and real estate investors with cash buying up the bargain basement home are making it a difficult road.

The home buyer tax credit will expire in about 60 days and that will decrease the number of motivated home buyers. It ain’t a pretty picture.

If you need expert advice or some help buying or selling your home, give me a call at 240-417-9100 or e-mail me.