More Good Real Estate News!

Just in time to add some oomph to the recent press release that some friends and I put out about our respective markets improving noticably in 2009, the National Association of Realtors® also issued a press notice today titled Existing Home Sales Show Surprising Gain.

The NAR release began with and expanded on this opening paragraph:

Existing-home sales rose unexpectedly while inventory declined, led by a surge of sales in the West, according to the National Association of Realtors®.

Highlights of their notice also include the following good news...

1. Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 6.5 percent to a seasonally adjusted annual rate of 4.74 million units in December.

2. [a quote from Lawrence Yun, NAR Chief Economist]
“It appears some buyers are taking advantage of much lower home prices. The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future.”

“We’ve added 25 million people to our population over the past decade and housing affordability conditions are the best we’ve seen since 1973, but household formation is much lower than expected,” he said. “Consequently, there is a pent-up demand which could be unleashed with the right stimulus, including a non-repayable home buyer tax credit. The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery.”

3. Single-family home sales: ROSE 7 percent to a seasonally adjusted annual rate of 4.26 million in December from a level of 3.98 million in November.

4. Existing condominium and co-op sales: Increased 2.1 percent to a seasonally adjusted annual rate of 480,000 units in December from 470,000 in November.

5. Existing-Home Sales By Region

Northeast: slipped 1.4 percent to an annual pace of 720,000 in December.

Midwest: increased 4.0 percent in December to a level of 1.04 million.

South: rose 7.4 percent to an annual pace of 1.74 million in December.

West: jumped 13.6 percent to an annual rate of 1.25 million in December and are 31.6 percent higher than a year ago.

6. Final Summary: A Good Time to Buy

NAR President Charles McMillan said it’s an excellent time for first-time home buyers with good jobs.

“The typical buyer plans to stay in their home for 10 years, which is the correct approach in today’s market,” he said. “With historically low mortgage interest rates, flexible sellers, a large inventory, and homes that are selling for less than replacement construction costs in much of the country, buyers who’ve been on the fence should take a closer look at today’s market.”

McMillan added that first-time buyers may want to consider an FHA loan, which offers downpayments of 3.5 percent on a safe 30-year fixed-rate mortgage.

Myrtle Beach real estate is showing the best signs ever of picking up and serving our vacationers. Florida oceanfront property is also gathering momentum, from Daytona Beach to Sarasota and the Keys. I think we can all be hopeful for a better 2009!