Existing Home Sales – November Report

Home Sales Pace

National Association of Realtors have it that the sales of existing U.S. homes is showing apparent signs of slow yet sure recovery. The industry has recorded its second monthly gain in September of this year. Now, the total sales of existing homes have hit 10.0 per cent subject to slight adjustment annual rate of 4.53 million units in September up from the 4. 12 million last August.  Side by side the pacing of sales also in September last year, it will be deduced that of today is down by 19.1 per cent.

With this data, Lawrence Yun, well-known economist for the NAR or National Association of Realtors, remains positive about the trend.  He is much confident in saying that there will be a recovery in the housing industry although little by little at first. It will be influenced by factors such as foreclosure and moratorium but overall home sales are directed upwards. This is due to the even lower interest rates that are being issued and terms and conditions being adjusted in favor of low income borrowers. As per records, the national average selling price of existing homes significantly dropped to $171, 700 for the month of September coming down from the $178, 600 if August. A 2.4 per cent drop in the price was also experience one year earlier. Figures were about or in between $176, 600.

There are different classifications for existing homes. The National Association of Realtors has narrowed it down to previously owned single- family homes, townhomes, condominiums and those released to co-ops. The sales of all these units, however, are not independent. They are adjusted due to many known factors such as changes in the weather, career and education possiblities. Besides this, the annual pace is also a great factor.

Sales Pace by Region

The NAR also believes that the amount of sales of existing homes in the US is also affected by the regional economy and statuses of the different states. For example, in September, the sales that had been recorded for the whole nation, following the trend of the Midwest, had a 14.5 positive difference from that of August. Although still 26. 4 per cent shy from that of last year, the increase in sales to a pace of           950,000 is still something to rejoice about.

On the other hand, areas belonging to the southern and northeast portions of the country were able to have a record of 10.6 per cent improvement or total sales of 1.77 million and 760, 000 units respectively although the pace is still lower by 20.8 per cent from that of September last year. The west, finally, showed an increase of 5. 0 per cent or sales record of 1. 05 million units.

Home Prices

The median selling prices of existing homes are evidently going down so that more people can be able to buy. Prices of houses sold in different regions of the country are lower by plausible rates. This is good news to people who want to have their own house despite the economic difficulty that is going on.

Inventory

Due to the slow pacing of sales, constructions of “existing homes” are also down to 1. 9 per cent. Meaning there are only 4. 04 million homes available for sale.

Next Report

Data and information covering October existing home sales, prices, and inventory is to be accessible at the end of November.

foreclosures