Existing-home sales resume uptrend with stable prices
Nationally, existing-home sales got back on an upward path in
November, resuming a growth trend since bottoming in July,
according to the National Association of Realtors®. Existing home sales rose
5.6 percent in November from October.
Lawrence Yun, NAR chief economist, is hopeful for 2011. “Continuing gains in
home sales are encouraging, and the positive impact of steady job creation
will more than trump some negative impact from a modest rise in mortgage
interest rates, which remain historically favorable,” he said.
Yun added that homebuyers are responding to improved affordability
conditions. “The relationship recently between mortgage interest rates, home
prices and family income has been the most favorable on record for buying a
home since we started measuring in 1970,” he said. “Therefore,
the
market is recovering and we should trend up to a healthy, sustainable level
in 2011.”
The national median existing-home price for all housing types in November
was up 0.4 percent from November 2009. Distressed homes have been a fairly
stable market share, accounting for 33 percent of sales in November; they
were 34 percent in October and 33 percent in November 2009.
Foreclosures, which accounted for two-thirds of the distressed sales share,
sold at a median discount of 15 percent in November, while short sales were
discounted 10 percent in comparison with traditional home sales.
Total housing inventory at the end of November fell 4.0 percent to 3.71
million existing homes available for sale, which represents a 9.5-month
supply at the current sales pace, down from a 10.5-month supply in October.
Investors accounted for 19 percent of transactions in November, unchanged
from October, but up from 12 percent in November 2009. All-cash sales were
at 31 percent in November, up from 29 percent in October and 19 percent a
year ago. “The elevated level of all-cash transactions continues to reflect
tight credit market conditions,” Yun said.
Single-family home sales rose 6.7 percent in November from October. The
median existing single-family home price in November is 1.2 percent above a
year ago.
In the South, existing-home sales rose 2.9 percent in. The median price in
the South was down 2.6 percent from a year ago.
Posted: 3 January 2011
Source: National Association of Realtors
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