NAR reported Tuesday that its index measure of pending sales of resale homes gained for the ninth month in a row in October with a 31.8% gain over the same month last year.
NAR expects 5.15 million sales of resale homes this year, compared with 4.91 million in 2008 and 5.65 million in 2007.
New single-family home sales will drop an estimated 18.7 percent this year following a 37.5 percent decline in 2008 and a 26.3 percent decline in 2007. according to the NAR forecast.
Distressed sales and foreclosures accounted for 40 to 45 % of the sales. That coupled with the national median price down 15.5% from last year and its clear that its not strong out there. The market is selling excess inventory, now at 10 months rather than the healthier 6 month forward supply NAR defines as a good market. Yet we are moving towards inventory reduction and price stabilization. I guess we will have to be satisfied with slow and steady and hope that 2010 is the rebound year.
2010 Is The Year
Lawrence Yun, Chief Economist at NAR indicates, that as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families. (Via realtor.org).
Chart Source: The Commerce Dept.
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