Home Sales 19 Consecutive Monthly Gain Faces 2013 ... (mber 2011. MIDWEST MEDIAN HOME PRI...)

Home Sales 19 Consecutive Monthly Gain Faces 2013 Wild Cards

Date:12/30/2012

mber 2011.

MIDWEST MEDIAN HOME PRICE - was $141,600, which is 7.0 percent above November 2011.

NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif., commented on the speculations of a rise in short sales before December 31, 2012 with the pending expiration of the Mortgage Forgiveness Debt Relief Act and Bush tax cuts. "The fact remains it is extremely difficult to expedite a short sale, and banks' response to client urgency is only starting to improve. However, we're hopeful that the act will be extended before it expires on December 31 so sellers don't have to pay taxes on forgiven mortgage debt, which would be unfairly treated as income for owners who are selling properties under duress to willing buyers," he said.

"Even with home sales up, in stark contrast, there's been minute movement in short sales. The short sale market share is staying in a tight range, and taking considerably longer to sell - generally around three months," comments Jenna Thuening, owner of Home Destination.

In a video released yesterday titled "Pending Sales Up, Post 19th Consecutive Year-Over-Year Rise" Robert Freedman from Realtor Magazine and Yun commented on the Dodd Frank rules. As they still need to be implemented, they are an unknown today, creating a "wild card" in 2013 home price estimates. Also, mortgage lending standards are a wild card. If mortgage underwriting becomes less stringent because of abundant bank profits and home price growth, it generate a greater increase in home sales than predic
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