However, this month is merely the extra mortar on the brick, because the New York Times says that home sales have increased by almost 36% since January, when they were at their lowest ebb. Nonetheless, despite these robust gains, overall sales of homes are still 16% less than they were during the height of the housing boom in 2005.
Even industry experts have been surprised at the brisk level of home sales. A Bloomberg survey of more than 60 economists showed that they expected sales of no more than 5.7 million to 6 million units at an annualized rate; however, the actual annualized sales rate hit 6.1 million, according to the National Association of Realtors, (NAR) a figure that was well ahead of September’s 5.5 million rate.
While single family homes accounted for 5.3 million of the sales, coops and condos also showed healthy gains. Nationwide sales figures for them were up by more than 13% to almost 775,000 units. However, Lawrence Yun, chief economist of the NAR, said that almost 30% of the sales were short sales or foreclosed properties. On a more optimistic note, The Commerce Department reported that sales of new homes move up to an annual pace of 405,000 as of October.
By region, the Midwest led the nation with a 26% year over year increase in sales from last year. In addition, the region showed a 1% median sale price increase. The North was the runner-up with a sales increase of 25%, followed closely by the South with a 23% gain. The West was a distant 4th with a gain of only 10%.
In some surprising home pricing news around the nation, the AP reports that Cleveland, Ohio, while hard hit by the loss of manufacturing jobs, led its region with a year over year median sale price increase of 15%. Sales of existing homes also increased by 6%.
Detroit, Michigan, experienced a median sale price increase of 6%, and its overall home sales went up by 8%. Chicago, however, watched its median price drop by 15%. On a positive note, sales were up 34% from last year.
Miami, Florida, still reeling from foreclosures, saw its values drop by 30%; but sales increased by almost 28% over last year’s figures. More important, Miami saw its glut of condominiums start to diminish when sales of those units rose by 47% over last years’ figures.
And last, but not least, honors for the largest sales gain go to Trenton, New Jersey, which experienced an increase of 45% over last year. Of course, the thrill of victory was tempered by an 11% year over year slide in prices. The biggest loser was Manchester New Hampshire, which shuddered its way to a 12% median price decrease. But look on the bright side: home sales took a flying leap of 17% over last year.
Overall, the current crop of sales figures across the nation is pointing toward housing market stability. That’s because, at present, there are approximately 3.5 million unsold homes sitting on realtor’s shelves. This is about a 7 month supply, a level we have not seen since February of 2007. When a 6 month supply is reached, the market is considered to be in equilibrium.
Written by Marc Jablon, Realty Associates
marcjablon@yahoo.com / 561 - 213 – 6139
www.MarcJablonHomes.com
Posted November 25th, 2009 by Armen Hareyan
