By Doug
Today the National Association of REALTORS released their January report. Below please find some of the interesting highlights of their findings:
Existing-home sales declined in January with some buyers waiting to see how details of the economic stimulus package would affect them, according to the National Association of Realtors®. At the same time, inventories fell to a two-year low.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – fell 5.3 percent to a seasonally adjusted annual rate1 of 4.49 million units in January from a level of 4.74 million units in December, and are 8.6 percent lower the 4.91 million-unit pace in January 2008.
Lawrence Yun, NAR chief economist, said there was understandable hesitation by some home buyers. “Given so much stimulus package discussion in January, some would-be buyers simply sat out for clarity and certainty on the nature of housing stimulus,” he said. “The housing market will soon get a lift from very favorable buying conditions – not only from improved affordability, but also from the stimulus of an $8,000 first-time home buyer tax credit, and higher conforming loan limits that will allow more people to tap into 50-year low mortgage rates.”
NAR estimates the impact of the stimulus package and lower interest rates on the housing market to be about 900,000 additional home sales in 2009 compared to conditions before the stimulus package. Inventory is expected to fall below an 8-month supply by the year end, which would be consistent with home price stabilization.
Total housing inventory at the end of January fell 2.7 percent to 3.60 million existing homes available for sale, which represents a 9.6-month supply2 at the current sales pace. Because sales were down, the January supply is up from a 9.4-month supply in December.
“The drop in total inventory is an encouraging sign because the number of homes on the market has declined steadily since peaking in July 2008, and inventory is at the lowest level in two years,” Yun said. In January 2007 there were 3.54 million homes for sale.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low at 5.05 percent in January from 5.29 percent in December; the rate was 5.76 percent in January 2008.
A high prevalence of distressed home sales, and of those in lower price ranges, has skewed the median price to be markedly lower than under normal market conditions. The national median existing-home price3 for all housing types was $170,300 in January, down 14.8 percent from a year earlier when the median was $199,800; the median is where half of the homes sold for more and half sold for less.
McMillan said we are living in a bifurcated market divided between distressed sales and traditional homes. “It appears that in many instances a buyer can get a really good deal on a distressed sale, although that home may require some significant effort to bring it up to standard.” A preliminary analysis by NAR suggests that non-distressed properties are holding their value much better.
“Distressed sales activity appears to be leveling off, although there are wide differences locally. For example, close to 80 percent of all sales are either foreclosed properties or short sales in Santa Ana, Calif., but less than 20 percent in the Chicago region,” Yun said. About a quarter of all inventory is listed as being distressed, but NAR estimates that distressed sales – foreclosed or those requiring a lender-mediated short sale – comprised about 45 percent of all sales in January. “Home buyers are evidently competing for homes with deep discounts,” he said.
Yun said it will take a while for the stimulus to show in housing data. From the time a buyer starts looking for a home until it is reported as a closed sale can take as long as five months: a median of 10 weeks to search and make an offer, about 6 weeks to close the transaction and up to 4 weeks to collect and report the data. “This means improvement from the economic stimulus isn’t likely to show as closed home sales before summer, although we may see an earlier lift from lower mortgage interest rates,” he said.
Significant local market variations continue. “A majority of markets experienced sales declines of more than 20 percent from a year ago, but some markets appeared to have reached the tipping point of accelerating home buying,” Yun said. “For example, home sales in Las Vegas have more than doubled with some reports of multiple bids.”
Regionally, existing-home sales in the West were unchanged at an annual rate of 1.20 million in January and are 29.0 percent stronger than a year ago. The median price in the West was $220,000, which is 25.5 percent below January 2008.
If you would like to see the entire article, visit:
http://www.realtor.org/press_room/news_releases/2009/02/january_ehs_inventory?LID=RONav0021
No doubt there is no market in the country that has escaped the downturn, which means there are wonderful buying opportunities. I can’t count how many times clients have told me “I should have bought “X” number of years ago when the prices were lower.” Well, now is your time!
If you are looking for a nice single family home within the Steamboat Springs town limits, I previewed one yesterday on Uncochief Circle that is very well priced. Originally listed at $1,095,000, this four bedroom, three bath home was built in 1982 but its 2,549 square feet has been very well maintained. The property borders open space and is at the edge of the city limits. It has a beautiful kitchen with hand crafted walnut cabinets, maple hardwood floors, new appliances and an open floorplan. Living area views look past the large deck to unobstructed views of the Steamboat Ski Area, Buffalo Pass and beyond. A new roof, newly paved driveway and newly stained exterior show the pride these owners have had in maintaining the property. The list price on this Steamboat home has just been reduced to $795,000.
Give us a call today and we would be happy to provide you with additional information.
