Home sales up 11.5 percent nationally in january
Existing-home sales in January were up 11.5 percent above January of 2009, according to the National Association of Realtors. Existing-home
sales- including single-family, townhomes, condominiums and co-ops-
dropped 7.2% to a seasonally adjusted annual rate of 5.05 million units
in January from a revised 5.44 million in December, but remain 11.5%
above the 4.53 million-unit level in January 2009.
Lawrence Yun, NAR chief economist, said there is still some delay
between shopping and closing that affected current sales. “Most of the completed deals in January were
based on contracts in November and December. People who got into the
market after the home buyer tax credit was extended in November have
only recently started to offer contracts, so it will take a couple
months to close those sales,” he said. “Still, the latest monthly sales
decline is not encouraging, and raises concern about the strength of a
recovery.”
Total housing inventory at the end of January fell 0.5% to 3.27
million existing homes available for sale, which represents a 7.8-month
supply at the current sales pace, up from a 7.2-month supply in
December. Raw unsold inventory is 9.6% below a year ago, and is at the
lowest level since March 2006.
“Activity should be picking up strongly in late spring as buyers take
advantage of the tax credit, which is critical to absorb distressed
properties reaching the market and to continually chip away at
inventory,” Yun said. “With a downtrend in the number of homes on the
market, especially in the lower price ranges, values are beginning to
firm but with great variance around the country.”
The national median existing-home price for all housing types was
$164,700 in January, unchanged from a year earlier. Distressed homes,
which accounted for 38% of sales last month, continue to downwardly
distort the median price because they typically are discounted in
comparison with traditional homes in the same area.
A parallel NAR practitioner survey shows first-time buyers purchased
40% of homes in January, down from 43% in December. Investors accounted
for 17% of transactions in January, up from 15% in December; the
remaining sales were to repeat buyers. The survey also shows that buyer
traffic increased 9.4% in January.
NAR President Vicki Cox Golder, owner of Vicki L. Cox &
Associates in Tucson, Ariz., said buying a home in the current
environment has become more challenging. “First-time buyers and others
who need a mortgage are increasingly losing out to all-cash investors
for the best bargains in many areas, particularly for foreclosed homes
where cash is king,” she said. “Inventory conditions vary by price
range, and of course there are major differences depending on location.
Realtors are the best buyer resource for strategies on winning bids in
increasingly competitive markets,” Golder said. “The bidding for more
desirable homes will only accelerate between now and the April 30
contract deadline to qualify for a tax credit of up to $8,000.”
According to Freddie Mac, the national average commitment rate for a
30-year, conventional, fixed-rate mortgage edged up to 5.03% in January
from 4.93% in December; the rate was 5.05% in January 2009.
Single-family home sales are 8.6% above the 4.08 million pace in January 2009. The
median existing single-family home price was $163,600 in January, down
0.4% from a year ago.
Existing condominium and co-op sales
are 38.1% above the 449,000-unit level a year ago. The median existing
condo price was $172,400 in January, which is 1.4 % higher than January
2009.
Northeast
Regionally, existing-home sales in the Northeast are 22.4% above a year ago. The median
price in the Northeast was $245,300, a gain of 8.8% from January 2009.
Midwest
Existing-home sales in the Midwest are 8.0% higher than January 2009. The median price
in the Midwest was $130,300, which is 1.0% below a year ago.
South
In the South, existing-home sales are 12.0% above a year ago. The median price in
the South was $140,200, down 2.0% from January 2009.
West
Existing-home sales in the West are 7.6% higher than January 2009. The median
price in the West was $203,400, down 5.8% from a year ago.
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