Dallas Home Appraisals News and Information

The National Association of Realtors said Tuesday that the number of buyers who agreed to purchase an existing home fell to a new low in January.  The index of pending sales contracts fell more than 7 percent from the December figure of 87.1.  The January figure was worse than the 2% drop from December that economists expected.  The previous low of 83.1 came in November of last year.  The seasonally adjusted index has tracked signed contracts to purchase existing homes since 2001.  This could be due in part to potential buyers waiting to see how the stimulus shakes out.

With this in mind, we're hoping that the tide could turn soon if 1) with tighter credit, potential buyers are saving up more toward a down payment with the potential of buying in the next 3-6 months, 2) buyers are waiting for the stimulus package to kick in to be sure they get any entitlements - such as the $8000 tax credit for new buyers -and the lowest interest rate (many are predicting that the Fed will push rates down to 4.5 or 4.25 before it's all over), with the potential of buying in the next 3-6 months, or 3) the stimulus and other measures actually start showing results soon - job losses level out or reverse, rates go down, banks start lending again, consumers start feeling better about spending again - and buyers begin buying homes again in the next 3-6 months. 

On the we'll-know-if-this-is-good-news-soon-enough front, the Obama administration's foreclosure prevention program is now open for business according to a report on CNNMoney.com.  Federal officials will begin promoting the program at homeowner events across the nation, and borrowers can now contact their loan servicers to see whether or not they are eligible for assistance.  Click here to read the article, which highlights the requirements for borrowers to participate in the program.  In achieving the stated goal of helping as many as 4 million homeowners prevent foreclosure, and helping up to 5 million refinance into lower-cost loans, the plan could also help put a stop to the declining home prices caused in large part by foreclosures. 

What are your thoughts on the foreclosure prevention plan and the impact to your business - pros and cons?  If you're a homeowner or potential buyer, how will these measures affect your decision/ability to refinance or purchase?