Washington, DC, January 20,
2012
Existing-home sales continued
on an uptrend in December, rising for three consecutive months and remaining
above a year ago, according to the National
Association of Realtors®.
The latest monthly data shows
total existing-home
sales1 rose 5.0 percent to a seasonally adjusted annual rate of 4.61
million in December from a downwardly revised 4.39 million in November, and are
3.6 percent higher than the 4.45 million-unit level in December 2010. The
estimates are based on completed transactions from multiple listing services
that include single-family homes, townhomes, condominiums and co-ops.
Lawrence Yun,
NAR chief economist, said these are early signs of what may be a sustained
recovery. “The pattern of home sales in recent months demonstrates a market in
recovery,” he said. “Record low mortgage interest rates, job growth and bargain
home prices are giving more consumers the confidence they need to enter the market.”
For all of 2011, existing-home
sales rose 1.7 percent to 4.26 million from 4.19 million in 2010.
According to Freddie Mac, the national average
commitment rate for a 30-year, conventional, fixed-rate mortgage
fell to another record low of 3.96 percent in December from 3.99 percent in
November; the rate was 4.71 percent in December 2010; recordkeeping began in
1971.
NAR President Moe Veissi,
broker-owner of Veissi & Associates Inc., in Miami, said more buyers are
expected to take advantage of market conditions this year. “The American dream
of homeownership is alive and well. We have a large pent-up demand, and
household formation is likely to return to normal as the job market steadily
improves,” he said. “More buyers coming into the market mean additional
benefits for the overall economy. When people buy homes, they stimulate a lot
of related goods and services.”
Total housing inventory at the
end of December dropped 9.2 percent to 2.38 million existing homes available
for sale, which represents a 6.2-month supply2 at the current sales pace, down
from a 7.2-month supply in November.
Available inventory has trended
down since setting a record of 4.04 million in July 2007, and is at the lowest
level since March 2005 when there were 2.30 million homes on the market.
“The inventory supply suggests
many markets will see prices stabilize or grow moderately in the near future,”
Yun said.
Foreclosures3 sold for an
average discount of 22 percent in December, up from 20 percent a year ago,
while short sales closed 13 percent below market value compared with a 16
percent discount in December 2010.
The national median
existing-home price4 for all housing types was $164,500 in December, which is
2.5 percent below December 2010. Distressed homes – foreclosures and short
sales – accounted for 32 percent of sales in December (19 percent were
foreclosures and 13 percent were short sales), up from 29 percent in November;
they were 36 percent in December 2010.
All-cash sales accounted for 31
percent of purchases in December, up from 28 percent in November and 29 percent
in December 2010. Investors account for the bulk of cash transactions.
Investors purchased 21 percent
of homes in December, up from 19 percent in November and 20 percent in December
2010. First-time buyers fell to 31 percent of transactions in December from 35
percent in November; they were 33 percent in December 2010.
Contract failures were reported
by 33 percent of NAR members in December, unchanged from November; they were 9
percent in December 2010. Although closed sales are holding up better than this
finding would suggest, contract cancellations are caused largely by declined
mortgage applications and failures in loan underwriting from appraised values
coming in below the negotiated price.
Single-family home sales
increased 4.6 percent to a seasonally adjusted annual rate of 4.11 million in
December from 3.93 million in November, and are 4.3 percent higher than the
3.94 million-unit pace a year ago. The median existing single-family home price
was $165,100 in December, which is 2.5 percent below December 2010.
Existing condominium and co-op
sales rose 8.7 percent to a seasonally adjusted annual rate of 500,000 in
December from 460,000 in November but are 2.0 percent below the 510,000-unit
level in December 2010. The median existing condo price was $160,000 in
December, down 3.0 percent from a year ago.
Regionally, existing-home sales
in the Northeast jumped 10.7 percent to an annual pace of 620,000 in December
and are 3.3 percent above a year ago. The median price in the Northeast was
$231,300, which is 2.7 percent below December 2010.
Existing-home sales in the
Midwest rose 8.3 percent in December to a level of 1.04 million and are 9.5
percent above December 2010. The median price in the Midwest was $129,100, down
7.9 percent from a year ago.
In the South, existing-home
sales increased 2.9 percent to an annual level of 1.76 million in December and
are 3.5 percent above a year ago. The median price in the South was $146,900,
down 1.1 percent from December 2010.
Existing-home sales in the West
rose 2.6 percent to an annual pace of 1.19 million in December but are 0.8
percent below December 2010. The median price in the West was $205,200, up 0.3
percent from a year ago.
The National Association of
Realtors®, “The Voice for Real Estate,” is America’s largest trade association,
representing 1 million members involved in all aspects of the residential and
commercial real estate industries.
# # #
NOTE: For local information,
please contact the local association of Realtors® for data from local multiple
listing services. Local MLS data is the most accurate source of sales and price
information in specific areas, although there may be differences in reporting
methodology.
No comments:
Post a Comment