According to the National Association of Realtors (NAR), existing home sales rose 5.6% to a seasonally adjusted annual rate of 4.68 million in November from 4.43 million in October, but are still 27.9% below the cyclical peak of 6.49 million in November 2009, which was the initial deadline for the first-time buyer tax credit.
Lawrence Yun, NAR chief economist, explained, ""Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable." He added that home buyers are responding to improved affordability conditions. "The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970," he said. "Therefore, the market is recovering and we should trend up to a healthy, sustainable level in 2011."
Distressed homes have been a fairly stable market share, accounting for 33% of sales in November; they were 34% in October and 33% in November 2009. Foreclosures, which accounted for two-thirds of the distressed sales share, sold at a median discount of 15% in November, while short sales were discounted 10% in comparison with traditional home sales. The national median existing-home price for all housing types was $170,600 in November, up 0.4% from November 2009.
Another recent NAR survey shows first-time buyers purchased 32% of homes in November, the same as in October, but are below a 51% share in November 2009. Investors accounted for 19% of transactions in November, also unchanged from October, but are up from 12% in November 2009. All-cash sales were at 31% in November, up from 29% in October and 19% a year ago. "The elevated level of all-cash transactions continues to reflect tight credit market conditions," Yun said.
Regionally, existing-home sales in the Northeast rose 2.7% to an annual pace of 770,000 in November but are 33.0% below the cyclical peak in November 2009. The median price in the Northeast was $242,500, which is 9.2% higher than a year ago.
Call or email me to discuss your housing needs in the new year. Inventory is still high, but rates are rising, so start planning now to purchase that Hamilton NJ home.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogs/josephgiancarli
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