U.S. home sales rose 7.4% in November from October to a seasonally adjusted annual rate of 6.54 million units, according to the National Association of Realtors (NAR). That was the highest level of sales since February 2007. The median sales price of existing homes also rose in November to $172,600.

Are Home Prices Stabilizing?

The figures seem to indicate that housing prices are stabilizing. Improved home sales could spell good news if you’re thinking of selling your home or getting a reverse mortgage.

Selling in this Housing Market

First-time home buyers accounted for 51% of home purchases in November. “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” said Lawrence Yun, chief economist for the NAR. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010.”

Reverse Mortgage vs. Selling

Seniors who own homes in some in-demand areas could start to find more interest in their properties if they are listed for sale. Selling may make more sense than borrowing with a reverse loan:

• If you want to relocate to a different town;
• If you don’t want to be bothered with ongoing home repairs and maintenance;
• If you may need to move to an assisted living facility or nursing home soon.

Reverse Loan Can Help You Relocate

Improvement in the housing market also could be beneficial if you plan to borrow with a reverse loan. An increase in home prices means your home value may rise, which could boost the amount of the appraisal when you apply for a reverse mortgage. You could also sell your house and use a reverse home mortgage to downsize to another another home.

This entry was posted on Wednesday, December 23rd, 2009 at 2:00 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.