Existing Home Sales Drop to Nine Year Low
home sales
The National Association of Realtors reported today, that its seasonally adjusted index of sales agreements for previously occupied homes dropped 30 percent in May from April. The index fell to 77.6 from 110.9. May’s reading was the lowest dating back to 2001.
The huge declines were widespread. Pending sales dropped by 33.3 percent in the South, by 32.1 percent in the Midwest, by 31.6 percent in the Northeast, and by 20.9 percent in the West.
Existing Home Sales Take Largest Drop in 40 Years!
home sales
The National Association of Realtors reported that existing home sales plunged 16.7% last month to a seasonally adjusted annual rate of 5.45 million units. Analysts had expected the December sales rate to hit 5.9 million annual units. The 16.7% drop was the largest one month drop in existing home sales in 40 years!
For all of 2009 there were 5,156,000 existing-home sales, which was 4.9% higher than 2008′s total. That was the first annual sales gain since 2005.
Existing Home Sales Up 6.4% in West
home sales
The National Association of Realtors (NAR) reported today that existing home sales were up for a third month in a row. Nationally, existing home sales increased 3.6 percent to a seasonally adjusted annual rate1 of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2 percent lower than the 4.90 million-unit level in June 2008. Plus, home inventories eased and home prices were declining less sharply in June.
Existing-home sales in the West improved by 6.4 percent to an annual rate of 1.16 million in June, and are 11.5 percent higher than June 2008. The median price in the West was $214,800, which is 24.9 percent below a year ago.
NAR President Charles McMillan, said: “Despite some of the challenges, the housing market continues to demonstrate signs of recovery. The temporary first-time buyer tax credit is clearly helping people make a decision and is contributing to the overall stimulus impact, but since it’s taking longer to close transactions, many would-be beneficiaries may not be able to take advantage of the credit before the December 1 expiration date. As a consequence, consumers need the expertise of Realtors® more than ever to navigate both the obstacles and opportunities in today’s market.” San Diego home sales
Home Sales in the West Rose 3.5%
Home Sales
Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the National Association of Realtors®. NAR President Charles McMillan, a broker in Dallas-Fort Worth, said conditions are optimal for buyers with good jobs and long-term plans. “We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he said. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”
Existing condominium and co-op sales increased 6.4 percent to a seasonally adjusted annual rate of 500,000 units in April from 470,000 in March, but are 9.4 percent lower than the 552,000-unit pace a year ago. The median existing condo price4 was $173,900 in April, down 18.5 percent from April 2008.
San Diego housing good news: Existing-home sales in the West rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. The median price in the West was $222,600, down 21.8 percent from April 2008. San Diego Realtors
Existing Home Sales for March
INFO THAT HITS US WHERE WE LIVE March Existing Home Sales came in last week down slightly, to a 4.57 million annual rate. But the number of homes sold was still 1.8% above January's lows. With the sales level in the same range for the past five months, many say sales have now stabilized and probably bottomed. In addition, the median sale price increased in March for the second month in a row – the biggest monthly jump since June 2005 (not seasonally adjusted). The months' supply edged up to 9.8 from 9.7, but that was all from the slightly slower sales pace for single-family homes. The raw inventory actually declined for all types of homes.
The Federal Housing Finance Agency (FHFA) also reported home purchase prices rose 0.7% in February for houses financed by conforming mortgages. This was the second month in a row prices rose, putting them up 1.7% for the last two months, the biggest gain since 2005.
Friday saw March New Home Sales come in better than expected, at a 356,000 annual rate. This was a small decline from February, but that was all because of the upward revision to February numbers, not any March slowing. Inventories continue falling, to 308,000, down 46.0% from their mid-2006 peak and at the lowest level since 2002.
>> Review of Last Week
MIXED MESSAGES… After six weeks on the rise, the major stock market indexes ended last week mixed, with the Dow and the S&P 500 down a tad but the NASDAQ still on the upswing, to the tune of 1.3%. These mixed performances were due to the mixed messages coming from both corporate and economic data.
Overall, the week's Q1 earnings reports weren't terrific, although many beat estimates – 80 S&P 500 companies came in better than expected, 40 were worse. The good guys included IBM, DuPont, Caterpillar, AT&T, Microsoft, Apple, eBay, Amazon.com and Ford. Investors were happy to see tech hanging in and some life left in the American auto industry. Those missing earnings forecasts included 3M, Boeing , Merck and Morgan Stanley, which had a larger than expected Q1 loss and cut its dividend. Another major bank announced better than expected earnings, but also rising credit loss provisions.
Then we got preliminary reports about the Treasury's stress tests of 19 big banks. It seems most should be considered well-capitalized, but there are no details yet, such as whether any of them failed. The results will be made public next Monday. New unemployment claims came in a little higher for the week, although they're averaging below March levels, which is hopeful. Finally, software giant Oracle said it would buy Sun Microsystems and PepsiCo will buy up some major bottlers. The week ended with a 119-point jump in the Dow on Friday, but that wasn't quite enough to give us a seventh straight week of gains in the index.
The Dow ended the week off just 0.7%, at 8076.29; the S&P 500 slid an even smaller 0.4%, to 866.23; but the NASDAQ actually ended UP 1.3%, to 1694.29.
The bond market saw our closely-watched Treasuries trading lower most of the week, thanks to excess supply and some inflation concerns. The benchmark 10-year Treasury's yield, which runs counter to price, inched up to 3.007%. Let's see if the Fed starts buying to get the price back up and the yield down. Fortunat ely, mortgage rates on average remain at historically low levels.
>> This Week’s Forecast
LISTENING TO THE FED… The Fed meets again this week and, while no one expects any change in their rock-bottom rate, we'll be eager to hear the policy statement on Wednesday. We'll also watch the advanced reading on Q1 GDP, March Personal Spending (PCE) and the Chicago PMI and ISM takes on manufacturing.
Corporate Q1 earnings reports will be energized by Chevron and Exxon Mobil, along with Pfizer, Procter & Gamble and Verizon.
This post information was provided by: Greg Brooks southwest area manager San Diego Mortgage Network (800) 287-8292 x 225 San Diego real estate
Existing-Home Sales Up – Home Prices Fall
The National Association of Realtors reported that existing home sales rose 5.1% in February. This was the largest percentage gain since July 2003. Sales of foreclosed properties or short sales accounted for about 45% of transactions last month.
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