Existing And New Home Sales Rising

November 21, 2008

Existing-home sales are on the increase, as more people take advantage of lower home prices and mortgage rates that continue to be low. Those rates are very volatile, like the stock market, but they generally are very low. Home sales, including single-family, townhomes and condos, rose 5.5 percent from August to September, according to a report from the National Association of Realtors. "The sales turnaround, that began in California several months ago is now broadening across the country," said Lawrence Yun," NAR’s chief economist.

Richard Gaylord, NAR president, added this note: "This is the first time since November 2005 that home sales have been above year-ago levels. Credit tightened at the end of September, but the improvement demonstrates that buyers who’ve been on the sidelines want to get into the market to make a long-term investment in their future."

Yun warned that the credit market is not settled yet. "Additional housing stimulus would stabilize prices more quickly, and that in turn would bring faster stability to Wall Street. Removing the repayment feature on the first-time buyer tax credit and permanently raising loan limits would bring more buyers into the market and further reduce inventory," he said.

Newly built single family homes also increased in sales volume — up by 2.7 percent in September over the previous month, according to the U.S. Commerce Department. It’s now up to a seasonally annual rate of 464,000 units.

Posted in Real Estate