More Good News in the Housing Market

The National Association of Realtors (NAR), brought us continued good news in the housing market today.  Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the past year, said Lawrence Yun, NAR chief economist. “...access to safe, affordable mortgages will bring more buyers into the market.... NAR’s housing affordability index is likely to remain quite favorable in 2009."

An additional government report released today also claims that despite all the dire conditions reported in most news outlets,  "the majority of markets continue to show growth in home values over the last five years."  In fact in the last half decade, the following markets did quite well:

- Honolulu was up 78.7 percent
- Virginia Beach was up 72.6 percent
- Flagstaff, Ariz.: up 66.5 percent
- Bellingham, Wash.: up 65.6 percent
- Wilmington, N.C.: up 62.1 percent
- Baltimore: up 60.6 percent

Further, the NAR now predicts that the 30-year fixed-rate mortgage will probably decline to at least 5.6 percent in the first quarter of 2009.  (Remember we already blogged about the surge that is now occuring in mortgage applications)

And if all that wasn't enough good news for one day, Yun further observes that "California in particular has seen an exceptional turnaround in buying activity.  Many foreclosed homes have enticed buyers to take advantage of deeply discounted prices.  'Fence sitters' are beginning to do a lot more home searches.  That will result in a large set of potential buyers for the upcoming spring buying season."

Good news?