NAR Report Third Quarter
Sales Up Prices Down
This same story has been playing our for quite a while now. The trend towards lower prices will probably continue even as the recession winds down. Continuing job loss, a weak recovery and real problems in all real estate sectors, now focused on commercial property and Alt A high end homes, should keep a lid on prices. That said people are beginning to feel good again, or at least less wary. They are stepping out and buying homes and that is a good good sign.
Existing-Home Sales Surge While Price Moderate
Most states saw rising existing-home sales in the third quarter, with price declines in many metro areas, according to the latest survey by the National Association of Realtors. NAR reports that total state existing-home sales of single-family and condos, increased 11.4 percent and are now 5.9 percent higher than the third quarter of 2008. Sales increased in 45 states and 28 states saw double-digit gains. Year over year sales were higher in 32 states and D.C. Buyers are coming back and in some parts of California we are seeing multiple bids and homes selling for more than list.
During the third quarter, 123 out of 153 metropolitan statistical areas, 2 reported lower median existing single-family home prices while 30 areas had price gains NAR chief economist,Lawrence Yun spoke of the the tax credit. The NAR cheif economist goes on to say: We cant underestimate just how powerful a catalyst the first-time home buyer tax credit has been for the housing sector. Its given buyers the confidence they needed to get off the fence and take advantage of extremely affordable housing conditions. The buying conditions this year are the most favorable on record dating back to 1970, but the tax credit is allowing buyers to set aside any reservations about waiting for a better deal. (via cbsmarketwatch.com)
The decline in the national median price has moderated recently, and a shrinking supply of unsold inventory suggests we are getting closer to price stabilization in many areas, but we need a steady stream of financially qualified buyers to further reduce inventory and get us to a self-sustaining market, Yun said. (via cbsmarketwatch.com)
Soaking up supply Foreclosures will continue to come on the market, but rising sales from the expanded tax credit should stabilize home prices by next spring and help to stem future foreclosures. To be sure the numbers are mixed and some areas are experiencing reversals, but over all we are beginning to pull ourselves up out of this slump. As long as we continue to see a Fed willing to support the markets until they are strong enough to stand on their own, we should be able top avoid a double dip. Encouraging was to hear the G20 come out with a continuation of supports. This recovery is still in the hands of policy makers.
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Comments (4)
Nar has never failed to be optomistic about real estate. No bias there?
Don Konipol, about 14 years ago
To some extent thats true. FHA becoming a landlord will impact supply based on non market action. Seems that we are in that world now Right now the entire economy is distorted by interventions and stimulus. Likely to be more permanent than not.....Think Europe -Obama sees stability in regulation.
Howard, over 14 years ago
OOps make that Fannie may not FHA
Jim Wineinger, over 14 years ago
Dont forget that the supply reduction may be simply the result of FHA becomming a landlord instead of selling those REO's. Kinda of distorts some of those figures, just like the actual sales are likely to be 2 sales for each one in actuality due to investors purchasing and reselling to end buyers.
Jim Wineinger, over 14 years ago