Friday, February 11, 2011

Home Prices Stabilize in Most US Markets 4th Quarter, 2010

The National Association of Realtors (NAR) reported that home sales rebounded in 49 states during the fourth quarter with 78 markets - just over half of the available metropolitan areas - experiencing price gains from a year ago, while most of the rest saw price weakness.  Total state existing-home sales, including single-family and condo, jumped 15.4% to a seasonally adjusted annual rate1 of 4.80 million in the fourth quarter from 4.16 million in the third quarter,

In the fourth quarter, the median existing single-family home price rose in 78 out of 152 metropolitan statistical areas2 (MSAs) from the fourth quarter of 2009, including 10 with double-digit increases; three were unchanged and 71 areas had price declines. In the fourth quarter of 2009 a total of 67 MSAs experienced annual price gains.  The national median existing single-family price was $170,600 in the fourth quarter, up 0.2% from $170,300 in the fourth quarter of 2009.  Distressed homes, typically sold at discount of 10 to 15%, accounted for 34% of fourth quarter sales, little changed from 32% a year earlier.

Lawrence Yun, NAR chief economist, is encouraged by the trend. "Home sales clearly recovered in the latter part of 2010 and are helping to absorb the inventory, including many distressed properties. Even with foreclosures continuing to enter the inventory pipeline, they've been selling well and housing supplies have trended down," he said. "A recovery to normalcy requires steady trimming of the inventories."

Yun added, "An improving housing market and job growth will go hand in hand. The housing recovery will mean faster job growth." He projects about 150,000 to 200,000 jobs will be added to the economy this year from an anticipated 300,000 additional home sales in 2011.

NAR President Ron Phipps, said a very favorable affordability environment is a huge factor in the recovery. "Although job growth has been relatively modest and credit is tight, you can't underestimate the impact of historically high housing affordability conditions," he explained.  "Mortgage interest rates recently hit record lows, median family income has edged up, and prices in most areas have been stable following the correction from the housing boom. For people with good credit and long term plans, it's hard to imagine a better opportunity than what we see today," Phipps said.

Regionally, the median existing single-family home price in the Northeast increased 2.3% to $240,400 in the fourth quarter from a year earlier. Existing-home sales in the Northeast rose 15.0% in the fourth quarter to a level of 797,000 but are 22.8% below the surge in the fourth quarter of 2009 (due to the 1st time buyer tax credit).

Now is the time for you to consider becoming a homeowner.  Contact me to discuss your options and what would work best for you.

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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