The sales pace for resale homes rose for the third straight month in November climbing 44.1% compared to the same month last year, the National Association of Realtors reported today. rushed to close sales before the original November 30 deadline for the recently extended and expanded tax credit, according to the National Association of Realtors.
Existing Home Sales: are 44.1 percent higher than November 2008. Current sales
remain at the highest level since February 2007, first-time buyers purchased 51 percent of homes in November
Total Inventory: Total housing inventory at the end of November declined 1.3 % to 3.52 million existing homes available for sale, which represents a 6.5 month supply at the current sales pace, down from an 7.0-month supply in October.
Single-family homes: Sales jumped 8.5 percent to a seasonally adjusted annual rate of 5.77 million in November from a level of 5.32 million in October, and are 42.1
% above the pace of 4.06 million in November 2008.
Existing condominium and co-ops: Sales in November were unchanged. But are 60.1% above the 481,000-unit pace a year ago. The median existing condo price was $178,000 in November, which is 3.1 percent below November 2008.
NAR: NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said conditions are optimal for buyers in the current market. Inventories have steadily declined and are closer to balanced levels, which indicate home prices in many areas are either stabilizing or could soon stabilize and return to normal appreciation patterns.
The fly in the soup
Sales of new homes fell 11.3% in November to a seasonally as a popular tax break for first-time homeowners was set to expire. Sales of new single-family homes declined in three out of four regions in November, with only the Midwest posting a gain, of 21.4%. Declines of 3.3% , 21.1 %, and 9.2% were recorded in the Northeast, South and West, respectively, according to the National Association of Home Builders.
Existing home supplies still outstrip demand and the tax credit which supported better existing home sales figures is set to expire. Freddie Mac and Fannie Mae along with the FHA have control of almost 90% of all mortgages (where are the banks?).
The Treasury is still the source of liquidity for the secondary markets,
Banks are barely loaning any money and are facing another big crises. The Alt A loans and the commercial markets are all looking for new money as they recast to higher monthly rates. They will need to rebuild balance sheets before they take on more risk. Yes, we are coming out, but real estate, almost 20% of the US economy, is still very much dependent on Govt support.
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