February Real Estate Report by NAR Mirrors Hamilton NJ Home Activity

The National Assn of Realtors reports that existing-home sales declined slightly in February, with modest gains in the Northeast and Midwest offset by softer sales in the South and West.

Existing-home sales, which are finalized transactions that include single-family, townhomes, condominiums and co-ops, slipped 0.6 percent nationally to a seasonally adjusted annual rate of 5.02 million units in February from 5.05 million in January, but are 7.0 percent higher than the 4.69 million-unit pace in February 2009.

Those of us in New Jersey can certainly agree with Lawrence Yun's, NAR chief economist, conclusion that widespread winter storms in February may mask underlying demand. "Some closings were simply postponed by winter storms, but buyers couldn't get out to look at homes in some areas and that should negatively impact near-term contract activity," he said. "Although sales have been higher than year-ago levels for eight straight months and home prices are much more stable compared to the past few years, the housing recovery is fragile at the moment."
 
He continued, "The key test for a durable recovery comes in the next few months as the tax credit deadline approaches.  If we see a surge in home buying comparable to last fall in the months leading up to the original tax credit deadline, then enough inventory should be absorbed to ensure a broad home price stabilization."
 
The national median existing-home price for all housing types was $165,100 in February, which is 1.8 percent below February 2009. Distressed homes, generally sold at discount, accounted for 35 percent of sales last month.

A parallel NAR practitioner survey shows first-time buyers purchased 42 percent of homes in February, up from 40 percent in January. Investors accounted for 19 percent of transactions in February, compared with 17 percent in January; the remaining sales were to repeat buyers.

Regionally, existing-home sales in the Northeast rose 2.4 percent to an annual pace of 840,000 in February and are 12.0 percent above a year ago. The median price in the Northeast was $254,700, up 7.5 percent from February 2009.
 
The numbers will improve as Spring arrives and it warms up.  Search homes for sale in Hamilton, NJ on my web site.  You'll be amazed at what you can purchase now at low prices.  Remember, the 1st Time Buyer tax credit expires April 30, so start looking now.
 
Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.newjerseynewhomes.blogspot.com/
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