Residential Real EstateMarket Conditions
According to the National Association of Realtors" report released late last month existing-home sales slowed during the month of April.
This decline was felt most heavily in the Northeastern region, which saw its levels 14.7 percent below last year. The West and South faired better -- with rising and unchanged levels in April.
Could this sharp decline in the Northeast have skewed figures? A May 27th report from CNN/Money has shown that new home sales rose in April -- up 3.3 percent from the month prior. Also reported -- the median price of a new home during that same period was up 1.5 percent.
But is there a silver lining? Depends on who you talk to.
Some analysts report that these leveling and drops in prices have started to increase affordability in areas that saw bubbles in recent years. Take Stockton, CA, for example. Its affordability has gone from being 71 percent over-valued to just 4.3 percent, which is great news for buyers.
Our local market expert for the area, Christine Papworth, is reporting that it"s a buyers market with falling prices in Stockton. She says, "Prices continue to fall as the numbers of REO (bank-owned) properties and short sale properties climb daily. ... The investors and first-time homebuyers are out in droves! Apparently our price point just reached a place where with 20 percent down an investor can have break-even or have positive cash flow! It"s been years since we saw this available to our investors."