Perfect Conditions for Home Sales

Gillette Wyoming Real Estate is a booming business due to a market that is producing perfect conditions for new and preoccupied home sales. Just about everything about the area is working in favor of both sellers and buyers, which are bucking the trend of a national sales slump and slow down in home constructions. As expected, areas with higher than average incomes, lower than average unemployment and better than average climates seem to produce a friendlier environment to move into. With these excellent conditions, it is easy to see why people are moving to the area.

The average income in the area has been running around $64,000. This runs almost ten thousand higher than the Wyoming average and is a huge increase from the 2000 average of about $46,000. The Gillette Wyoming Real Estate market has benefited from this gradual but steady increase because the new house growth rate has remained steady while property values increased. Fortunately, they did not take a major hit when the rest of the country seemed to decline in value. The market here remained steady partially due to the income standards strength, but also keeping unemployment low.

The unemployment is one of the lowest in the nation; running at just under five percent. Wyoming itself is running just over seven percent, which is significantly lower than the national average of between nine and twelve percent or higher depending on the area. Promoting industries that have seemed to weather the economic crisis has helped the Gillette Wyoming Real Estate market to continue to grow despite what could have been a disaster in all parts of the country. Better than expected work ethics have obviously helped stabilize businesses in the area.

Finally, the temperate environment has encouraged strength in the market place. Highs range in the 70s and 80s during the summer and winter conditions producing excellent 20s and 30s. These conditions continue to give the best of the summer and winter conditions for the Gillette Wyoming Real Estate market because homeowners can boast of the mild summers and playful winters with snowmobiles and four wheelers adding to the fun.

Foreign Investors Gobbling Up Real Estate and Lifting Home Sales in US Hot Spots

Prior to the housing bust, destinations such as South Florida, Las Vegas and Los Angeles stood out among U.S. cities as American hot spots, supporting what some saw as a “gold rush” in housing and causing prices in these metropolitan areas to explode. But when the bubble popped in these high demand cities, these double digit gains were quickly erased and values tumbled, losing more than 50% from their peak in some areas.

According to Zillow.com, the trend may continue well into 2012. Focusing on South Florida, the real estate website stated that home values in the area fell nearly 13 percent in the first three months of this year, compared to the same period last year. Nationally, home values fell on average 8.2 percent from a year ago. Zillow estimates that considering the pace of price declines nationally, the housing market will probably not hit bottom later this year, rather 2012 at the earliest. As for South Florida, the website says the area will not begin to bottom out until sometime after the national market hits bottom.

However, it is the decline in home prices that is enticing foreign buyers and investors to search for real estate within these hardest hit areas. Coupled with a declining dollar which allows foreign money to go a lot further, the housing market is seeing an increasing support from foreign buyers around the world, from South America to Europe. For the 12 months ending in March, 31% of Florida’s home sales were to foreign buyers, up from 10% in 2007, according to a survey by the National Association of Realtors From vacation homes to investment properties such as condos to rent, this support could prove vital to the South Florida area and U.S. home sales.

California is also seeing a jump from foreign investments. Trulia, the online real estate information service, reports a big jump in searches for Silicon Valley real estate from other countries. Searches for property in Cupertino were up 90 percent in the first quarter of this year from a year earlier, Trulia reported. Palo Alto was up 121 percent; Los Altos Hills up 182 percent; Atherton up 68 percent and San Jose up 86 percent.

It will be some time before we see what effect this will have on the battered market, particularly in South Florida where home prices continue to fall despite brisk sales. But for now, these areas are welcoming the much needed lift in home sales and offering a little hope that the bottom is coming soon.

December Home Sales – An Ominous End to 2009

The year 2009 ended on less of an upswing for the real estate market than many people across the country would have liked to see, considering the amount of money that the government has spent to support the housing market; but only time will tell how the end of the year numbers will affect the first quarter of 2010.

While government programs strove to hold up the less than enthusiastic winter housing market, the sales numbers for December showed the most significant monthly drop since 1999; even when the numbers are adjusted for seasonal variation, that’s a big reduction in sales. The numbers tallied after the end of the month were expected to be lower than the previous month, but the extent of the fall wasn’t anticipated to have been so extreme.

Home sales took a nosedive in December with sales falling 16.7% (unadjusted) and even mortgage applications for purchasing new homes were at very low levels. Some of this trend is likely due to the fact that many home buyers were looking to complete their home sales by the end of the November 30 cut off date that the tax credit had originally been scheduled for. Another reason why December home sales were likely very low is the combination of the holidays and winter drop in home sales in combination with poor weather conditions across much of the nation.

How does this bode for the spring market? The home buyer’s tax credit program is ending April 30th, though the extension seems to have had less of an effect on the market than the initial program did; there is still a lot of time for home buyers to take advantage of the extension. Experts say that we’re likely to have an increase in home sales this spring as the season changes as more people are looking to take advantage of the low interest rates and home prices.

The approaching end to the Federal Reserve’s program of supporting mortgage-backed securities may well encourage anyone who’s thinking about buying a home to get the process started so that they can procure a mortgage before the March 31st cut off date, after which there may be some market correction in the mortgage industry resulting in higher interest rates. There is a lot of speculation about how the market is going to react in the spring when the government tax credit program ends and the Federal Reserve program stops holding down the interest rates, but in all actuality it’s hard to hazard a guess as to what the reaction will be. Home buyers would be wise to take advantage of the programs now while they can.