Pending Home Sales for December were up significantly from November's reading, and up a healthy 10.9% over December 2008, as homebuyers take advantage of today's low rates and tax incentives. And speaking of low home loan rates, the Federal Reserve purchased $12 billion in Mortgage Backed Securities last week, bringing the total to $1.173 trillion since the program began in January of 2009...which leaves just $77 billion in purchases to be made over the next eight weeks until the program ends on March 31^st. While home loan rates improved very slightly during this volatile week - don't forget that when the Fed is done buying, home loan rates will be very susceptible to moving higher. Please reach out to me to discuss how you or someone you know might benefit from current low rates, or the Homebuyers Tax Credit. The clock is ticking on both these fronts - so why wait? You can reach me at richard.oceguera@corcoran.com.

(The above info provided by Harold Sokol of Manhattan Mortgage)

The number of homes listed for sale rose only modestly in many parts of the U.S. in January, contrary to the usual big increase during the month. (See data.)

Housing analysts have been expecting more for-sale signs to sprout as banks catch up on a huge backlog of unresolved foreclosure cases and start putting more foreclosed properties on the market. That would likely put more downward pressure on prices, which have been stabilizing at the lower end of the market. But there is little sign that the expected buildup in inventory is happening.

The supply of homes available for sale in 27 major metropolitan areas at the end of January was up just 2.87% from a month earlier, according to figures compiled by ZipRealty Inc., a real estate brokerage firm based in Emeryville, Calif. The ZipRealty data cover all single-family homes, condominiums and town houses listed on local multiple-listing services in metro areas where the firm operates.

Inventories typically rise sharply in January after the holiday lull in home shopping. Zelman & Associates, a research firm, says that nationwide listings increased an average of 8.7% in January from the prior month between 1982 and 2008.

Ivy Zelman, chief executive of the firm, said it was surprising that there was no jump in January. But she said colder-than-usual weather may have caused some sellers to delay listings and that others may be waiting for a stronger market.

Compared with the year-earlier month, the January inventory in the 27 metro areas was down 22%.

The Zip data don’t cover New York City. Miller Samuel Inc., an appraisal firm in New York, reports there were 7,344 cooperative apartments and condominiums on the market in Manhattan at the end of January. That was up 10% from a month before but down 19% from January 2009.

An estimated 7.5 million households are behind on their mortgage payments or in the foreclosure process. Many of those homes eventually will hit the market, but government efforts to avert foreclosures are slowing that process as banks try to figure out which borrowers might be saved by reduced monthly payments.

Home sellers this spring may benefit as buyers rush to qualify for federal tax credits on purchases. To qualify for those credits, buyers must sign purchase contracts by the end of April and complete the transactions by the end of June.

By James R. Hagerty
The Wall Street Journal Online

No doubt you have been following the economic news closely over the last year.  If so, you have had your eyes on the real estate market as a key indicator for the recovery of our economy.

I am happy to inform you that Corcoran recently released its Fourth Quarter Corcoran Report, which surveys residential activity in Manhattan. Key highlights include:

• Prices are 15% lower than they were one year ago
• A re-sold apartment in the Fourth Quarter averaged $725,000, down 3% from the prior quarter
• Price per square foot rose 1% to $936
• Available inventory has dropped 36% since the peak in March
• The 4Q09 is on track to exceed last year’s level by 48% in units sold

The combination of shrinking inventory, stabilizing prices and increased sales are hopeful signs for the value of real property as we enter 2010. 

As the New Year unfolds, I will be tracking the data closely and welcome the opportunity to answer any questions you may have about this report or the market for property in Manhattan or Brooklyn.

Please review the report for full details. Looking forward to speaking with you soon.