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Here we are the first of March. The market is on FIRE. That does not mean prices are firming or going up, but bottoms are on the horizon in many areas. The last couple of weeks have seen the banks ease lending requirements: FNMAE increases investor loan limits from 4 to 10; FHA increases loan limit from $246K to $346K; FNMAE stopping lenders from negotiating Realtor commissions below 6% on Short Sales.
These actions are just taking place and have not affected the market yet. However, weekly home sales for past couple of weeks are at 4 year highs. Homes under contract, the Pending homes, reached over 10,000 last week for the first time in 4 years. Only 6 weeks in 2006 through 2008 recorded levels over 8,000 homes Pending.
January had the second highest level of home sales recorded for the month, second only to 2005; even after being adjusted down. Now the numbers are out for February. Preliminary numbers show 4,817 single family homes closing in February, 2009. See the Chart below. You can click on the chart to make it larger. Last months single family home sales were the 3rd highest ever recorded, 3rd to February 2004 and February 2005.
If you are looking for a sign to enter this market, it won't get any clearer than this!
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