Friday Five: Top real estate headlines of the week

By: Brad Horner

Call it “the light at the end of the tunnel”… call it “a step in the right direction”… call it “wishful thinking”… Call it what you will, but you can’t deny that there has been a handful of very positive – and, hopefully, very telling – real estate headlines in the past week or so.  Below are our top five:

1. Builder confidence improves in April The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) surged four points to 19 in April 2010, its highest level since September 2009.  Builders report a “real improvement” in traffic and sales during the month and “positive momentum” at the start of the spring home buying season.  The South actually had a substantial HMI gain in April, from 4 points to 21.
2. Home prices post first annual increase in 3 years Tuesday’s Standard & Poor’s/Case-Shiller home price index reported the first annual increase (in February 2010, the last month reported) since the end of 2006.  And nationally, home prices are up more than 3% from the bottom in May 2009. 
3. Mortgage applications on the rise Mortgage applications in the United States rose by the largest amount in seven weeks – increasing 13.6% in the week ending on April 16, according to The Mortgage Bankers Association’s index.  The gauge of purchases climbed 10.1 percent, and a drop in mortgage rates boosted the refinancing measure by 15.8 percent, the first gain since the end of February.
4. New-home sales see biggest jump in 47 years Sales of new homes surged 27% in March 2010 (in great contrast to the record low in February 2009), the strongest month since July2009.  Sales grew a “whopping” 44% in the South.
5. Home price reduction levels drop 26 percent 20% of current home listings were reduced in price at least once compared to 27% of listed homes in April 2009, representing a 26% decline nationally. 

The tax credits were certainly factors behind these positive headlines, therefore the coming months (following the end of the credits) may still feel like an uphill battle.  But 65% of consumers shopping for homes say that the end of the home buyer tax credit is unlikely to deter them.

I call this a positive note on which to start the weekend!

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