The median price of an existing home that sold in April of this year was $177,400, an increase of just over ten percent from a year ago. That is the biggest price jump since January of 2006. The difference between now and then, though, is the 2006 price jump was real, this latest spike is not. Fat Chance Productions | Iconica | Getty Images“This is a mix of home issue,” warned National Association of Realtors chief economist Lawrence Yun, who usually tries to see the positives in all housing numbers. “There is an acute inventory shortage in Phoenix, Las Vegas, Ft. Myers,” Yun explains. As we reported here on the Realty Check last month, a lack of distressed supply, that is foreclosures and short sales, ... Continue reading →

As real estate investors rush to buy distressed properties and reap the rewards of a still-heating rental market, two distinct phenomena are suggesting caution, perhaps extreme caution. Paul J. Richards | AFP | Getty ImagesThe first is in sales of foreclosed homes that the banks now own (REO) and short sales (when the home is sold for less than the value of the mortgage, with the bank eating the loss). With banks looking to unload not only homes they’ve repossessed but homes with delinquent mortgages, they are courting more investors. Reports of bidding wars are growing louder, but home prices are not moving higher with all the action. In fact, most homes sold in April received just two or three offers and sold for below ... Continue reading →