NAR: Existing Home Sales Report
The
sales pace for resale homes rose for the third straight month in
November climbing 44.1% compared to the same month last year. Buyers rushed to close sales
before the original November 30 deadline for the recently extended and
expanded tax credit, according to the National Association of Realtors.
Existing Home Sales: are 44.1 percent higher than November 2008. Current sales remain at the highest level since February 2007 first-time buyers purchased 51% of homes in November
Total Inventory: Total
housing inventory at the end of November declined 1.3 % to 3.52 million
existing homes available for sale, which represents a 6.5 month supply
at the current sales pace, down from an 7.0-month supply in October.
Single-family homes:
Sales jumped 8.5 percent to a seasonally adjusted annual rate of 5.77
million in November from a level of 5.32 million in October, and are
42.1 % above the pace of 4.06 million in November 2008.
Existing condominium and co-ops:
Sales in November were unchanged. But are 60.1% above the 481,000-unit
pace a year ago. The median existing condo price was $178,000 in
November, which is 3.1 percent below November 2008.
NAR: NAR
President Vicki Cox Golder, owner of Vicki L. Cox & Associates in
Tucson, Ariz., said conditions are optimal for buyers in the current
market. Inventories have steadily declined and are closer to balanced
levels, which indicate home prices in many areas are either stabilizing
or could soon stabilize and return to normal appreciation patterns.
The fly in the soup
Sales
of new homes fell 11.3% in November to a seasonally as a popular tax
break for first-time homeowners was set to expire. Sales of new
single-family homes declined in three out of four regions in November,
with only the Midwest posting a gain, of 21.4%. Declines of 3.3% , 21.1
%, and 9.2% were recorded in the Northeast, South and West,
respectively, according to the National Association of Home Builders.
Existing
home supplies still outstrip demand and the tax credit which supported
better existing home sales figures is set to expire. Freddie Mac and
Fannie Mae along with the FHA have control of almost 90% of all
mortgages (where are the banks?).
The Treasury is still the source
of liquidity for the secondary markets, Banks are barely loaning any
money and are facing another big crises. The Alt A loans and the
commercial markets are all looking for new money as they recast to
higher monthly rates. They will need to rebuild balance sheets before
they take on more risk. Yes, we are coming out, but real estate, almost
20% of the US economy, is still very much dependent on Govt support.
