Surge in Pre-Owned Home Sales: Is Now the Time to Buy?

August Sales Surge

• Sales Increase: In August, sales of previously owned homes rose to 4.13 million, up from 3.84 million in July. This marks a 30% increase from the previous month, though it's still 19% lower than August 2009 levels. Source: National Association of Realtors.
• Census Projections: The Census Bureau had anticipated a slight increase, estimating a 4.10 million annual rate. Source: U.S. Census Bureau.

Market Context

• July's Decline: July 2010 saw a 27% drop in home sales, the lowest on record. August's numbers, while better, still lag behind June by 21.5%.
• Gradual Recovery: Experts caution against viewing this as a full recovery. The market's rebound is expected to be slow and steady.

Inventory and Pricing

• Inventory Levels: The inventory of pre-owned homes decreased by 0.6% in August. However, a significant supply of foreclosed properties remains, enough to meet demand for the next year.
• Price Predictions: Home prices might drop another 10-25% due to sluggish economic growth. This could benefit buyers looking for foreclosed properties.

Perspectives

Buyer’s Viewpoint

• Opportunity for Deals: With potential price drops and a steady supply of foreclosures, now might be an ideal time for buyers to enter the market.
• Long-Term Investment: Purchasing a home now could be a strategic move, especially if prices continue to fall.

Seller’s Viewpoint

• Challenges Ahead: Sellers may face difficulties as prices potentially decrease and competition from foreclosures remains high.
• Strategic Selling: Those looking to sell might need to adjust pricing strategies to attract buyers in a competitive market.

Conclusion

The recent increase in pre-owned home sales offers a glimmer of hope in a challenging market. Buyers have a unique opportunity to capitalize on potential price drops, while sellers must navigate a competitive landscape. For those interested in exploring foreclosure options, resources like ForeclosureDataBank.com can provide valuable insights.

Interesting Stats

• Foreclosure Impact: Foreclosed homes accounted for 24% of all sales in August 2010. Source: RealtyTrac.
• Historical Context: The 30% month-over-month increase in August 2010 was one of the largest on record, highlighting the volatility of the housing market during this period.

For more insights and data on the housing market, visit National Association of Realtors and U.S. Census Bureau.