The National Association of Realtors released the existing home sales figures for September 2008 today. Sales increased to a seasonally adjusted annual rate of 5.180 million units in September, up 5.50% from August 2008 and up 1.37% from September 2007. This is the first time sales have increased on a year to year basis in 30 months. The median sales price was $191,600 for September down sharply from $203,100 in August (down 5.7%) and down from $210,500 in September 2007 (down 8.98%). According to Lawrence Yun, NAR chief economist, “compared to a fairly small share of foreclosures or short sales a year ago, distressed sales are currently 35 to 40 percent of transactions. These are pulling the median price down because many are being sold at discounted prices.” March through August are the strongest months for home prices. We are now entering the weak time for home prices. The market turmoil is not helping things either.
Month's supply fell from 10.6 to 9.9 in September. Month's supply is normally lowest in the winter months. There is still a huge oversupply of homes that the industry has to work through before supply and demand is balanced.
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