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Sales of Properties in Home Foreclosures List Jumped in January

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By : John Cutts    99 or more times read
Sales of houses under home foreclosures list and non-foreclosed existing residential properties increased again in January, marking the third month in a row that sales figures for existing dwellings have risen in the U.S. A report from the National Association of Realtors (NAR) showed that figures increased for both monthly and yearly data.

According to the NAR report, sales of existing residential properties, such as federal homes, townhouses, condominiums and single family dwellings, rose to an adjusted yearly rate of around 5.36 million for January 2011, representing a 2.7% jump compared with December 2010, when the revised figure showed a sales total of 5.22 million. Compared with a year ago, the increase was 5.3%, with the January 2010 figure pegged at 5.09 million.

Although sales of properties at foreclosure auctions and existing houses have recorded three months of consecutive increases, January was actually the first time in a seven-month period that a year-over-year increase was recorded. Analysts stated that the rise in sales is a good sign for the housing market. They also claimed that the increase is due primarily to the improving job market and national economy.

Housing industry experts also stated that confidence among homebuyers is improving. It also helped that homes have become very affordable, particularly those properties in home foreclosures list stage. However, most buyers are reportedly hindered by tight lending standards, which could also be the reason for the rise in the number of all-cash transactions during the past few months.

The NAR report also showed that first-time homebuyers are starting to gain confidence as January figures showed that 29% of existing dwellings sold during the month were purchased by first-timers. Although this is lower than the 33% recorded in December, when more first-time buyers took advantage of the low-priced bank owned for sale homes, the number was still high, considering the current condition of the economy and the housing industry.

Buyers still found it difficult to secure financing though, even those who were purchasing low-priced dwellings in home foreclosures list. All-cash transactions accounted for 32% of the total January 2011 sales as buyers try to secure deals despite difficult lending conditions.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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