Monday, January 26, 2009

Existing home sales are up; prices continue down


The National Association of Realtors released the existing home sales figures for December 2008 today. Sales increased to a seasonally adjusted annual rate of 4.740 million units in December up from 4.450 million units in November but down from 4.910 million units in December 2007. The median sales price was $175,400 for December down from $180,300 in November (down 2.7%) and down from $207,000 in December 2007 (down 15.3%). The price decline was again led by the West where the median price declined by 11.6% compared to the previous month dropping from a median price of $241,000 in November 2008 to $213,100 last month. The median home price for the West in July 2007 was at $349,400; the median is now 39.0% lower.

Month's supply dropped 9.3 in December from 11.2 in November. This was largely due to a decrease in inventory from $4.163 million units in November to $3.676 million units in December. Inventory has dropped by an average of 8.2% in December from 2001 to 2007. This year the drop was 11.7%; larger than normal but not exceptionally large.

According to the NAR, currently 45% of all transactions are distressed sales. There is currently a moratorium on foreclosures that will be ending soon, so housing will continue to fall under intense pressure. Perhaps the biggest question is when will prices in the West firm up.


Digg my article Sphere: Related Content

No comments: