Break out your “dusty shoes” on November 5th!

You’re invited to take a first look at the Cornerstone Models and enjoy refreshments on us!

KHov Cornerstone Model Event

KHov.com/socal

888-345-2324

Sales of previously owned homes in the US rose more than expected in the prior month. There is still a large amount of homes for sale, but this is a surprise increase in May.

N.A.R (National Association of Realtors) Home Sales Index increased by 8.2%, jumping higher from the dismal numbers in April. Expert economists had expected the rise in contracts of only 3.8%.

The West showed double digit growth recently in signed sales contracts.

Source: NAR

Last month, applications for Mortgage demand reached its highest point in nearly 3 months, due to falling interest rates.

Surging demand to purchase and refinance homes helped fuel the biggest percentage gain in applications since March according to the Mortgage Bankers Association. The seasonally adjusted index of refinancing applications topped 16.5%, at the same time, home purchase applications also jumped 4.5%

The 30 year fixed rate motgages averaged 4.51%, which is a slight decline from the previous week of 4.54%.

Although refinance activity continues to dominate the marketplace, there are many home buyers out pounding the pavement and kicking tires looking for the right place to buy.

Median sales prices have dropped again in May, suggesting a slower than expected growth rate in price stability. The poor performance can be attributed mainly to buyer uncertainty, tight credit, and the pesky unemployment rate staying higher than normal.

Home sales themselves are also lower than expected for this time of year, the spring selling season builders usually rely upon to ramp up their production numbers. Last month 1,152 new homes were built in the Southland, one of the lowest numbers on record since 1988, according to DataQuick.

The median price has held steady in San Bernardino County, staying near $150,000 for the last several months. Last year there was a slight uptick in pricing due to the expired federal tax credit, as well as the California new home tax credit. The median prices for new and resale homes and condos in Southern California is $280,000, which is the same from April, but a drop from May 2010.

Foreclosure sales made up close to 34% of resales in May. Short sales made up 18% of May sales.

Source DataQuick

Federal Reserve Chairman, Ben Bernanke spoke to Congress on Tuesday noting that the job market and the overall economy has begun to weaken. Mainly due to higher energy prices, weather, the Japan crisis, and consumer confidence.  Though he also noted he expects the weakness  to be short-lived and later this year it to strengthen.

The Fed’s $600 billion Treasury bond buying program is ending this month, and they haven’t announced any additional measure to stimulate the economy further. The program was originally intended to keep interest rates low, for home buyers, and businesses alike. “Overall, the economic recovery appears to be continuing at a moderate pace, albeit at a rate that is both uneven across sectors and frustratingly slow from the perspective of millions of unemployed and underemployed workers.

Bernanke continued his pledge to keep interest rates low for an extended period. Hoping to continue the economic recovery. Most within the building industry agree, housing is what will lead the overall economy out of “The Great Recession.” Job creation is a key component to the building industry. When a home-buyer is ready to buy a home, that one purchase has a ripple effect on the economy. From the lumber company, framers, drywall company, landscapers, mortgages,  to even home furnishings, creating thousands of dollars of economic value.

To read more information about Ben Bernanke’s speech from Tuesday June 7, 2011. Jump to video.