New home prices plunge, sales soar

NEW YORK (CNNMoney.com) -- A big drop in the price of the typical new home sold in April spurred much better-than-expected sales, according to the latest government reading on the battered real estate and home building market released Thursday. New homes sold at an annual pace of 981,000 in April, up 16.2 percent from the revised 844,000 pace in March. Economists surveyed by Briefing.com had forecast an 860,000 rate in April. The gain in sales compared to March is the biggest jump in 14 years. But even with the April spike factored in, April sales came in 10.6 percent below year-earlier levels. The median price of a new home sold in April plunged 10.9 percent from a year earlier to $229,100. The new price reading was also down 11.1 percent from the March reading.
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Bernanke Plays Down Threat From Subprime Defaults

Federal Reserve Chairman Ben Bernanke said Thursday that the financial system can withstand the fallout from the subprime-mortgage market "without serious problems."

"We have spent a bit of time evaluating the financial implications of the subprime issues, tried to assess the magnitude of losses, and tried to determine how concentrated they are," Mr. Bernanke said in response to a question following a speech here. "There is a sense that, although there is always a possibility for some kind of disruption ..., the financial system will absorb the losses from the subprime mortgage problems without serious problems."

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Lenders Seek to Modify Rather Than Foreclose Mortgages

As home foreclosures mount, mortgage companies are knocking
on doors, sending letters and making phone calls with a
simple message for struggling homeowners: They'd rather
modify your loan than foreclose. EMC Mortgage Corp.,
specialist with a $78 billion portfolio of subprime loans --
for homeowners with weak credit -- this week launched a
50-person team it calls "the Mod Squad." Members will spend
an unlimited time on the phone with troubled borrowers,
sifting through their bills to compute a workable monthly
payment. In an industry that often rewards workers for
getting off the phone quickly, the team is preparing to
speak to just three people a day. To read the entire
article go to FoxNews.com.

Pricing turnaround in Phoenix

The difference between the prices Phoenix homeowners are asking for their properties and what buyers are paying is narrowing, says an article by the Arizona Republic. The gap, which hit a record high in mid-2005, is the smallest it's been since mid-2004. This narrowing could signal a potential recovery for the local market, the Republic says, as buyers and sellers start to agree on prices. The article adds that in the metro area, the market tends to vary neighborhood by neighborhood -- some houses are selling at their asking prices in metro Phoenix, while in some fringe areas of the city, it's more of a buyer's market.

What You Can Do to Avoid Foreclosing on Your House

By Terri Cullen
From The Wall Street Journal Online

The rate of residential home foreclosure filings dropped dramatically in April, down 14.3% from the previous month, according to Foreclosures.com. Still, year-to-date the foreclosure-filings rate is higher than the same period a year earlier.

What to Do: Depending on your lender, you may be able to restructure your mortgage if you're late in making monthly payments. The delinquent mortgage payments may be added to the mortgage balance, or the homeowner could be given additional time to make catch-up payments. If you can no longer afford your adjustable-loan rate, don't count on bankruptcy court to save your home: Changes in the bankruptcy law in 2005 have made it harder for homeowners to qualify for a "fresh start" and prevent foreclosure. Instead, work with a qualified credit-counseling service to restructure your non-mortgage debt to free up cash-flow. Federal help may also soon be on the way: Mortgage-finance giants Fannie Mae and Freddie Mac are planning to introduce alternative financing to help homeowners with subprime loans avoid foreclosure.

Taking a Dip
Nationwide the number of foreclosures dropped in April.

Supply of Homes Continues To Grow, Reflecting Weak Sales

The number of homes listed for sale in 18 major metropolitan
areas at the end of April was up 7% from March, according to
data compiled by ZipRealty Inc., a national real-estate
brokerage firm in Emeryville, Calif. The data cover listings
of single-family homes, condos and town houses on local
multiple-listing services.
The increase was above the seasonal norm. Over the past 22
years, home inventories nationwide have increased an average
of 4.5% in April from March, according to Credit Suisse
Group. Spring is the busiest time of year for home shopping,
as families with children try to get settled ahead of the
next school year.
Go to RealEstateJournal.com to read the entire article.

Home Sales, Prices Will Continue To Slide, NAR Predicts

In its latest forecast for the real-estate market, the National Association of Realtors projected that existing home sales will fall 2.9% this year to 6.29 million, compared with its previous forecast of a 2.2% decline. The drop-off for new home sales is expected to be more severe. The NAR said new home sales are likely to fall 18% to 864,000, compared with the prior forecast of a 14% drop.

Read the whole article are RealEstateJournal.com

London homes world's most expensive: survey

London beat the glamour of Monaco, New York, Hong Kong and Tokyo to become the world's most expensive place to buy residential property, a survey showed on Tuesday. Residential property in the British capital costs on average 2,300 pounds per square foot, or 36,800 euros (49,889 dollars) per square meter, according to the 'Wealth Report 2007.' That beat nearest competitor Monaco, where property costs an average of 2,190 pounds per meter or 35,000 euros per square meter.

To read more go here.

April Numbers Fall

Although the official numbers will not be out for another 2 weeks it is safe to say April sales were slower than March sales.  I believe this is a sign of things to come.  I do not anticipate May sales improving much over April if at all.  Unfortunately some sellers are still overpricing their homes.  This is just causing an increase in supply and as a result buyers are either sitting around waiting for the prices to drop or picking and choosing the best looking homes out there.  There are buyers out there, you just need to make your home more attractive to those buyers.