According to a news item on NYSAR's website dated 3/24/08, sales of existing homes in February increased and remain within a fairly stable range according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.9 percent to a seasonally adjusted annual rate (1) of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8 percent below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September.
Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said. “Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year.”
Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said. “Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year.”
The national median existing-home price (2) for all housing types was $195,900 in February, down 8.2 percent from a year earlier when the median was $213,500. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively fewer sales in higher priced markets.
Home prices within metropolitan areas are more telling. The most recent data shows roughly half of the metro areas in the U.S. with price increases, with healthy gains in markets such as Oklahoma City and Trenton, N.J. “In other areas such as Sacramento, a rapid price decline has induced buyers to come into the market and sales are now rising,” Yun said. “The relationship between home prices, interest rates and income has improved to the point where buyers are more serious about making offers.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.92% in February from 5.76% in January; the rate was 6.29% in February 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, CA, said that negotiation and knowledge are even more important in the current market. "Consumers need to be aware of local market conditions and comparable sales prices to have a clear picture of a home's value," he said. " Realtors® understanding of local markets, negotiating expertise, and transaction experience are invaluable to both byers and sellers, today as much as ever."
Total housing inventory fell 3.0% at the end of February to 4.03 million existing homes available for sale. Single family homes sales increased 2.8% to a seasonally adjusted annual rate of 4.47 million in February fraom an upwardly revised 4.35 million in January, but are 22.9% below the 5.80 million-unit level a year ago. The median existing single-family home price was $193,900 in February, down 8.7% from February 2007.
In the Northeast, existing-home sales jumped 11.3% to an annual pace of 890,000in February, but are 26.4% below February 2007. The median price in the Northeast was $264,800, up 0.4% from a year ago.
The information above is an abidged article by the same title authored by Walt Molony at NAR. The National Association of Realtors®, "The Voice for Real Estate", is America's largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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