Existing Home Sales Rise

Sales of existing homes rose in January by the largest amount in two years, raising hopes that the worst of the severe slump in housing may be coming to an end. Median home prices, however, fell for a sixth straight month.

The National Association of Realtors reported Tuesday that sales of previously owned homes rose by 3 percent last month, the biggest one-month increase since a 3.3 percent advance in January 2005, a time when housing was roaring toward the peak of its five-year boom.

This is hopefully a sign of the bottoming out of the "slump".  I believe we still have a glut in the Memphis new homes inventory, which has a good and bad side to it for the short term. If you are a buyer, you have plenty of choices and in some cases higher than normal builder bonuses. There are several Memphis area builders that are offering $15,000 in builder bonuses that you can apply toward closing costs, upgrades, and even up to six months mortgage payments paid.

The down side is obvious on the developers and builders (and Realtors). When the market takes a sudden turn like it did late last year, it causes a major hiccup in the flow of new home sales. There is a major ripple effect through out the industry that affects laborers, material supply companies, sub-contractors, mortgage lenders, and the list goes on.

But, for now if you are a buyer or potential buyer of a new home; it is your market. Contact a Realtor (it's free) and explain to them what your needs and desires are for a neighborhood and home and let them show you your options. They will also guide you through the web of details involved in purchasing from a builder. Keep in mind, you will NOT pay more for that home by having a Realtor represent you in your purchase, as some sale associates in the models will make you believe. By not having your own representation, you will be dealing with a sales associate that will hold the builders best interest in the hand and you will allow them a double payday.  

Visit here for more information on the home buying process.

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