Market continues to move.

As the heat of the summer begins to approach, the sizzling activity of sales in Brevard County is the greatest in many months. Fueled by short sales and foreclosures and fired up by the lowest interest rates in years, the economic forecast indicates the light at the end of this tunnel is shining a little brighter on Brevard.

Existing lending institutions echo President Barack Obama's mandate "to help the homeowner."
Lenders are working with sellers in foreclosure, to recast loans, by lowering the interest rates, extending the foreclosure process or eliminating back payments. Communication with the lender, by the homeowner, is imperative. If the plan works, it could decrease the number of foreclosures and lead to a stabilization of the real estate market sooner than expected. By "sooner than expected," I mean stabilization will be seen in two years rather than three.

On the other hand, the delay in foreclosures may just mean that another wave will come at a later date than originally predicted. With the economy showing some signs of recovery, let us hope the foreclosures will be rescued by employment and budgeting by the homeowner in distress. Utilizing all of the counseling, refinancing and recasting offered by lenders, this type of homeowner has some alternatives rather than losing his home.

In some neighborhoods, the abundance of short sales and foreclosures has been eliminated, and buyers are finding they have missed the bottom-of-the-market bargains. Sellers, not in duress, are holding to somewhat higher prices and buyers will determine if they will purchase for the higher than short sale or foreclosure price or move on to another neighborhood. The future holds the answer to whether more short sales and foreclosures will appear or is this the corrective process of the real estate market?

Buyers may be frustrated at the change in a neighborhood from an abundance of short sales to none at all. The buyers must remember that even though they missed the short sale, the prices are still extremely low compared to the price to build. This, too, will change. New homes are being sold with no profit to the builder but the inventory and selection is growing smaller. There is still an oversupply and there are still great values, but the very best deals are disappearing.

The latest Housing Chartbook March 2009 economic forecast indicates the market may still drop slightly but next year's interest rates are predicted to increase slightly, therefore, negating any advantage for buyers to wait. Buying now at today's low prices, low interest rates and still with a good selection of inventory has buyers rushing to contract on existing homes.