The Division of Sales

Breaking Down Some Figures
July showed improvement for builders and new developers, as sales were up nearly 10% over June’s numbers. Most analysts are keen on watching this figure as a gauge for overall economic recovery.

Meanwhile, one out of every five home sales for the month was the result of a foreclosure, a full 20% of the market. That said, as investors already know, the distribution of such sales throughout the country is not evenly dispersed—not even close. Depending on where a buyer lives, foreclosures may account for very few sales.

Short sales came in at one in nine for 11% of the overall July sales. Incidentally, the NAR announced on Wednesday that they are now offering a new short sale and foreclosure certification program.

Uvestor Opportunity:
With one third of the sales coming from foreclosures and short sales over the summer (and probably a higher percentage to come in the next few months) there is ample opportunity to cash in on some discounted properties.

Rates are the on the side of those who have less than full cash amounts on hand. The 30-year rate was down two-tenths from June to July to 5.22%, more than a full point lower than it was last summer.

Those with minds toward selling need to watch a couple of numbers, in particular. The unemployment rate has been roughly 10% this year, and that has had more effect on foreclosures than rates have, at this point. The other big number is yet to be known—how many adjustable rate mortgages are going to send new batches of homeowners underwater and hopelessly behind on equity? Once that becomes clearer, the future buyer’s climate will make more sense.