Existing homes are starting to move again. Last month, home resales hit their highest level in more than two years, thrashing expectations. The 9.4% increase in home resales -- which entails a seasonally adjusted rate of 5.57 million -- is attributed largely to the deadline for the first-time home buyer tax credit.
According to the National Association of Realtors, the annualized, seasonally adjusted rate is up from the 5.1 million in August and far ahead of the 5.35 million expected for September (based on economists surveyed by Thomson Reuters).
All the action in the home resale market, though, hasn't stopped the price declines. The median sale price fell 8.5% year-over-year to $174,900. This is also slightly off August's median of $177,300. On the bright side, unsold homes inventory dropped 7% to 3.63 million, a 7.8 month supply at today's sales pace and the lowest level since March 2007.
The home resale market is improving, but it still hasn't caught up with last year. Sales have picked up 24% since January, but they're still off 23% from four years ago. Out west, sales were up 13% from the previous month. But, foreclosures are moving upward, too. Los Angeles, San Diego, and Las Vegas are seeing a lot of homes come under the gavel, giving first-time buyers a chance to take advantage of some deals.
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Reader Comments (Page 1 of 1)
10-24-2009 @ 10:31PM
VISIONARY said...
DOESN'T HELP PUT UNEMPLOYED TRADESMAN BACK TO WORK. MUST HAVE NEW CONSTRUCTION FOR THAT TO HAPPEN. NO RELIEF IN SITE AT THIS POINT IN TIME.
10-25-2009 @ 6:38AM
Dennis Norman said...
Unfortunately the increase in home sales is directly related to the homebuyer tax credit which is set to expire at the end of November....If the credit is not extended I think the housing sales will drop off quickly and retreat to levels we saw a few months ago....if the credit is extended it is still only going to act as life support for the market unless there is some genuine improvement in the economy and specifically unemployment.....There was a study done by the Rosen Group that showed the tax credit has been the primary reason buyers have returned to the market...I included the info from the survery as well as info and a link for Fix Housing First, a coalition that has been working to extend the tax credits, in a post I did at:
http://realestateconsumernews.com/home-sellers/homebuyer-tax-credit-has-been-primary-cause-of-recent-return-of-buyers-to-market-according-to-study/