Wednesday, March 26, 2008
Inventory of Homes for Sale
The national numbers for February 2008 indicate that there is a 9.8 month supply of new homes, and 9.6 month supply of resale homes. In other words, based on the current sales trend for both new and resale homes, it would take more than nine months for the market to absorb all the homes currently available for sale.
In general, a three month supply represents a neutral market - neither a buyer's nor a seller's market. The current market strongly favors buyers.
In general, a three month supply represents a neutral market - neither a buyer's nor a seller's market. The current market strongly favors buyers.
Monday, March 24, 2008
Home Sales Increase in February 2008
Good news, for a change. The following is from the National Association of Realtors:
Daily Real Estate News | March 24, 2008 Existing-Home Sales Rise in February
Sales of existing homes increased in February 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 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.”
The national median existing-home price 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.
Daily Real Estate News | March 24, 2008 Existing-Home Sales Rise in February
Sales of existing homes increased in February 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 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.”
The national median existing-home price 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.
Thursday, March 13, 2008
Home Values Still Declining
According to the CEO of Freddie Mac, home prices will continue to decline:
The good news for those of us in metro Atlanta is that our home prices did not rise to unrealistic levels during the boom years so they don't have as far to fall. We may see some decline in prices, but there will not be thousands or even hundreds of people in houses worth far less than what they owe.
"Housing prices in the U.S. have only fallen about one-third as far as they're going to drop, the chief executive officer of Freddie Mac said.
"During a call with analysts on Wednesday, Richard Syron, CEO of the McLean, Va.-based mortgage-finance giant (NYSE: FRE), said prices still have more falling to do, and from peak to trough will decline 15 percent."The good news for those of us in metro Atlanta is that our home prices did not rise to unrealistic levels during the boom years so they don't have as far to fall. We may see some decline in prices, but there will not be thousands or even hundreds of people in houses worth far less than what they owe.
