Saturday, November 27, 2010

Home Resales Drop in October but Improvement Forecast

According to the National Association of Realtors (NAR), existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, declined 2.2% to a seasonally adjusted annual rate of 4.43 million in October, down from 4.53 million in September.  Sales were 25.9% below the 5.98 million-unit level in October 2009, when the first-time buyer tax credit was available.  Year-to-date, there were 4.149 million existing-home sales, down 2.9% from 4.272 million at this time in 2009.

Lawrence Yun, NAR chief economist, said the recent sales pattern can be expected to continue. "The housing market is experiencing an uneven recovery, and a temporary foreclosure stoppage in some states is likely to have held back a number of completed sales. Still, sales activity is clearly off the bottom and is attempting to settle into normal sustainable levels," he said. "Based on current and improving job market conditions, and from attractive affordability conditions, sales should steadily improve to healthier levels of above 5 million by spring of next year."

The national median existing-home price for all housing types was $170,500 in October, down 0.9% from October 2009. Distressed homes accounted for 34% of sales in October, compared with 35% in September and 30% in October 2009.

Total housing inventory at the end of October fell 3.4% to 3.86 million existing homes available for sale, which represents a 10.5-month supply at the current sales pace, down from a 10.6-month supply in September.

NAR President Ron Phipps echoed Yun's assessment, stating "We'll likely see some impact from the foreclosure moratorium in the months ahead, but overly tight credit is making it difficult for some creditworthy borrowers to qualify for a mortgage.  We are continuing to deal with a notable share of appraisals coming in below a price negotiated between a buyer and seller."  He continued, "A return to common sense loan underwriting standards would go a long way toward achieving responsible, sustainable homeownership."

Regionally, existing-home sales in the Northeast declined 1.3% to an annual pace of 750,000 in October and are 27.2% below the surge in October 2009. The median price in the Northeast was $240,200, which was 1.9% higher than a year ago.

For detailed analysis of sales and activity in your community, call or email me.  I'm familiar with all of our Mercer County neighborhoods, and can advise you on local housing trends and prices.

Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
jgiancarli@remax.net
609-658-2612
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogs/josephgiancarli
























No comments: