Real Estate News Shorts This Week

New Home Sales Spike in November

New U.S. single family home sales spiked to a seven month high in November according to Commerce Department. Sales rose 1.6 percent to a seasonally adjusted annual rate of 315,000 units from the previously reported 307,000 units.

Along with that good news, the months’ supply of houses dropped to the lowest level in 5 and ½ years in November as well. In the 12 months period through November, new home sales rose by 9.8 percent. Existing home sales and housing starts were up as well.

How Low Can Rates Go?

The New York Times posted an article with that title, and states that the Federal Reserve is committed to keeping mortgage interest rates low through 2012. At least through the spring, mortgage rates are expected to hover around the 4.25% mark.

As investors, we can still benefit from some of the advice for regular home buyers in this article. The article advises that planning is required to cash in on the lowest rates, as they’re only going to stellar credit candidates. Determining what they can afford, then taking steps to improve credit scores is highly recommended.

Similarities to the Canadian Boomer Predictions?

An article about upcoming housing demands for the aging Canadian population could provide some valuable information for American investors. In Canada, by 2036, nearly one-quarter of the population will be seniors, and their housing demands will shape a major segment of the market.

Mainly a demand for condominiums is cited, but also requirements for home adaptations and support services are mentioned. For both single and multi-family real estate investors, some attention should be paid to modifications that will make a home more valuable to an older population, perhaps semi-invalid as well. Wider doors, bathrooms that accommodate wheelchairs, and other affordable modifications could bring marketing clout and higher resale prices.