Foreclosures in the U. S. made up about 1/3 of all homes sales April to June.  In a healthy market sales that is about 6 times the percentage of foreclosures.  Foreclosure sales would have been much higher if banks hadn’t slowed their foreclosure processes while state & federal officials continued to investigate possible faulty practices.  Foreclosure sales – which include homes purchases after they receive a notice of default OR already repossessed by lenders – peaked 2 years ago at 37.4% of sales in the U. S.  During the same period 2010, foreclosures are now down 11%.  Nevada has the highest with foreclosures totally 65% of all sales & Arizona next with 57%.  Foreclosed homes continue to sell for less than other homes or about 40% less than average price of other homes, BUT usually NOT IN AS GOOD CONDITION AS OTHER HOMES.  Sales of homes in the foreclosure process or short sales sold for 21% less than the average home sold.

(1)  stick with a fixed-rate mortgage.  Yes rates are higher, BUT principal & interest payments will remain the SAME.  ARMs or adjustable mortgage rates are becoming more popular.  (2) put- and keep – a home wrranty in place.  Can be a God-send if you are short of cash.  Also can upgrade your plan.  Most sellers will pay for the 1st year.  The 2nd year it may rise, but you pay for it then.  (3)  get repair bids and estimates, not just inspections.  Legally an inspector cannot bid a repair, as it is a conflict of interest.  Get these bids before your option period or continguency runs out.  Although pest and roof contractors can give you a bid legally.  (4)  Buy for the 10-year plan, so you are not forced to sell in a down market.  Try to plan ahead for 10 years and get a mortgage you can comfortably handle.

FDR said “a nation of homeowners is unconquerable” and Ronald Reagan said “we will preserve the part of the American DREAM, which the mortage interest deductible symbolizes”. We are LANDOWNERS and includes the working class to the middle class.  HOME OWNERSHIP IS A MUST and so is the mortgage deduction!                          Texas affordability is the best in the nation and freedom for builders so they can respond to demand and no government regulation, so they can obtain construction loans.  Underwriting on loans is too tight, so even with the population increase, NO new households are buying, so rents will rise.  1/3 of home sales are cash – never that high but  underwiting is too strigent.  A 102 year old prison southwest of Houston is being shut down.  First time a prison closed.  This prison made famous by the song “Midnight Special”.

from same period last year.   July 2011 saw 278 homes sold as compared to 255 July 2010.  Last month’s sales were down 11% from 313 sold in June.  A bit of good news is great after the interesting week in the stock market.  These figures are from the Greater Tyler Association of Realtors.  Real estate is LOCAL.  The median price also increased 3.6% to $139,800.  Means all sectors are selling.  The Tyler area’s home inventory stook at 14.6 months or down from l4.9 in May.  The best news might just be the average days on the market fell to 98 days.  First time in 18 months this has happened.  Smith County had 38 new foreclosures in July, according to RealtyTrac.  Texas’ overall inventory is 7.6 months in June compared to 8.2 months earlier.

NASA will have thousands of layoffs with Clear Lake homes staying on the market longer and more coming up for sale.  Some do not know about other jobs, so may be more psychological  than economic.  People are moving to Houston, but it’s not an active market.  2010 was a more active market because of the tax credit and the market is down this quarter from last year, but actually “if anything, I’m suprised to see the sales volumn didn’t lag further behind 2010” according to Dr. Jim Gaines, chief economist at the Real Estate Center at TX A&M University.  This is interruped as the market is beginning to turn around.  Layoffs are making us all nervous and Trane in Tyler is laying off several hundred, which does also happen some years, but whether this is permanent or temporary is to be seen.