Thursday, February 24, 2011
THE GOOD NEWS...
According to the National Association of Realtors:
· Existing home sales increased 2.7% nationally
· This is the first time in 7 months that sales activity was higher than a year earlier
· Chief Economist Lawrence Yun says
o Home sales uptrend is consistent with improvements in the economy and jobs
o Consumer confidence is boosting
o Affordability conditions are a big factor
o Tight credit has resulted in high levels of all-cash purchases primarily for distressed homes sold at deep discounts – which pulls the median price downward but traditional homes in good condition have held their value
o Investor activity is another factor re purchasing undervalued homes
· In January, first time buyers bought 29% of homes sold
· Investors bought 23% of purchases in January
· Housing inventory is at a 7.6 month supply, lowest level since 12/2009
· Existing-home sales increased 3.6% in the South
NAR is America’s largest real estate trade association, representing 1.1MM mebers involved in all aspects of the residential and commercial real estate industries.