According to CNN, new homes sales in July ‘unexpectedly fell’ to the lowest level on record. I can’t say that I agree with the term unexpectedly. What did everyone think was going to happen after the expiration of the tax credit for first time home buyers? The media is overflowing with adjectives–as usual. I have seen everything from soared, sank, plunging, to tanked used as descriptions. While the percentage decrease in home sales is not comforting to sellers, buyers have some tremendous opportunities placed at their feet.
| Regional Sales by Price | |||||||
| Existing Single Family Homes | |||||||
| July 2010 | |||||||
| % Change in Sales from 1 Year Ago | |||||||
| Region | $0-100K | $100-250K | $250-500K | $500-750K | $750K-1M | $1M+ | |
| Northeast | -28.2% | -37.6% | -33.1% | -20.9% | -1.3% | 4.7% | |
| Midwest | -19.3% | -46.5% | -36.8% | -17.1% | -14.6% | 0.5% | |
| South | -5.2% | -32.1% | -21.5% | -2.6% | -8.7% | 6.7% | |
| West | -31.0% | -24.4% | -24.7% | -11.9% | -6.8% | 7.8% | |
| U.S. | -17.1% | -35.3% | -27.9% | -12.8% | -6.7% | 6.1% | |
| Sales Distribution | |||||||
| Region | $0-100K | $100-250K | $250-500K | $500-750K | $750-1M | $1M+ | |
| U.S. | 22.3% | 43.0% | 23.9% | 6.9% | 2.0% | 1.9% | |
| Information from National Association of Realtors® | |||||||
I believe the market will turn around in direct relationship to job creation. The current interest rate is unbelievably low–mid 4% range! Wow! It’s great news if you still have a job! There are also a number of mortgage opportunities available to buyers as well. True, gone are the days of the NINJA (No income, no job/assets) loans, but there are some very good products for buyers to select from.
FHA financing is available when buying a home in the Minneapolis are up to $417,000. There are going to be changes with the MIP (Mortgage Insurance Premium) coming in September. Check back to see what those FHA changes are and how they may affect your ability to buy a home.
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