WASHINGTON , March 23, 2009
Existing-home sales increased in February, reversing losses in January. Even so, sales activity remains relatively soft, reflecting additional layoffs and buyers waiting for housing provisions in the economic stimulus package to take effect, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 5.1 percent to a seasonally adjusted annual rate1 of 4.72 million units in February from a pace of 4.49 million units in January, but are 4.6 percent below the 4.95 million-unit level in February 2008. Seasonal adjustment factors are more volatile in winter months, but sales rates over the past few months show dampened sales activity.
Lawrence Yun, NAR chief economist, said first-time buyers accounted for half of all home sales last month, with activity concentrated in lower price ranges. “Because entry level buyers are shopping for bargains, distressed sales accounted for 40 to 45 percent of transactions in February,” he said. “Our analysis shows that distressed homes typically are selling for 20 percent less than the normal market price, and this naturally is drawing down the overall median price.”
The national median existing-home price2 for all housing types was $165,400 in February, down 15.5 percent from a year ago when the median was $195,800 and conditions were close to normal; the median is where half of the homes sold for more and half sold for less. “Given the downward distortion in price comparisons due to distressed sales, it’s important for owners to keep in mind that this doesn’t equate to a similar loss of value for traditional homes in good condition,” Yun explained.
Yun said a recovery in the West is much stronger than expected. “Strong sales gains in the West are led by California, where the median listing price is beginning to rise for the first time in three years,” he said.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said home shopping activity has picked up with housing affordability at a record high. “The number of buyers looking for homes rose 5 percent in February, and also was 5 percent above a year ago,” he said. “It appears most of the increase in buyer traffic occurred in the latter part of the month after the $8,000 first-time buyer tax credit was put in place. At the same time, mortgage purchase applications have risen, so we expect to see sales picking up around late spring.”
McMillan noted that more potential buyers are learning about the tax credit, just as the traditional spring home-buying season begins. “In this changing market, smart buyers and sellers consult with Realtors® who can advise them about current conditions in their area, and counsel them on the best way to move forward,” he said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage edged up to 5.13 percent in February from a record low 5.05 percent in January; the rate was 5.92 percent in February 2008. Last month’s average mortgage rate was the second lowest since data collection began in 1971. Last week the rate further declined to 4.98 percent.
Total housing inventory at the end of February rose 5.2 percent to 3.80 million existing homes available for sale, which represents a 9.7-month supply3 at the current sales pace, unchanged from January. In the six months prior to February, the total number of homes for sale had steadily declined from a record level last July.
Single-family home sales rose 4.4 percent to a seasonally adjusted annual rate of 4.23 million in February from a level of 4.05 million in January, but are 3.6 percent below the 4.39 million-unit pace in February 2008. The median existing single-family home price was $164,600 in February, down 15.0 percent from a year ago.
Existing condominium and co-op sales increased 11.4 percent to a seasonally adjusted annual rate of 490,000 units in February from 440,000 units in January, but are 13.1 percent lower than the 564,000-unit pace a year ago. The median existing condo price4 was $172,200 in February, which is 18.7 percent lower than February 2008.
Regionally, existing-home sales in the Northeast jumped 15.6 percent to an annual pace of 740,000 in February, but are 14.9 percent below February 2008. The median price in the Northeast was $251,200, down 4.8 percent from a year ago.
Existing-home sales in the Midwest increased 1.0 percent in February to a pace of 1.04 million but are 14.0 percent lower than a year ago. The median price in the Midwest was $131,000, which is 7.8 percent below February 2008.
In the South, existing-home sales rose 6.1 percent to an annual pace of 1.74 million in February but are 11.2 percent below February 2008. The median price in the South was $146,700, down 10.0 percent from a year ago.
Existing-home sales in the West increased 2.6 percent to an annual rate of 1.20 million in February and remain 30.4 percent higher than a year ago. The median price in the West was $204,600, which is 30.3 percent below February 2008.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
Sounds simple doesn't it!
After 30 years in the real estate and investment business in the UK, US, Canada & Europe I still can't understand how we ignore the warning signs when the market is high and rush ahead and buy, buy buy!!
Then when we have a correction ( yes this is where we are now) people do not have the confidence to buy at the bottom as they are consumed with looking for the actual bottom!!!
Most people I talk to are nursing large losses from stocks and are frightened to death to do anything except sit tight. Some are filing their stock certificates with losses of many 100's of percent in the deepest draw they own!
On the other hand, their real estate purchases are maybe off 50% at most so which is the better investment?
Well, like everything, you should have a balanced and diverse portfolio --I cannot speak about stocks but I would say there is a good reason for cash and property.
In the area of Englewood Florida, we had too much inventory built and too few buyers but as I speak( March 2009) we are seeing this trimmed as people realize what a bargain these properties are.
The sun is the same, the area is fantastic, the opportunities are there for investors, our banks are lending, our International Rental Program is flourishing so the indications are there.
Don't miss the boat, come down and take a look!!
Related Story:
January existing-home sales fall, inventory down, says NAR
Rev Your Engines with Classic Cars, Atmosphere and Eats
at Charlotte Harbor’s New Muscle Car City Museum
Charlotte Harbor & the Gulf Islands, Fla. (March 4, 2009) – Row upon row upon row of lovingly restored, colorful and gleaming classic cars so shiny you can see yourself in them. Automotive memorabilia, from vintage gas pumps to road signs and traffic signals. A Motor City diner serving up the tasty treats we used to order from the car hop at a drive-in. That’s Rick Treworgy's Muscle Car City, Charlotte Harbor’s latest attraction that has baby boomers and their kids and grandkids buzzing.
Opened March 3, 2009, and located near I-75 in Punta Gorda, Rick Treworgy's Muscle Car City features nearly 200 automobiles of every era dating back to the 1920s. As per its name, the museum’s major focus is on the “muscle cars” of the mid 60s to early 70s – the Pontiac GTOs, Chevy Corvettes, Oldsmobile Cutlass 442s, Chevelles, Camaros and high-horsepower Impalas that revved up the imaginations of teens and young adults all over America. The museum includes a cafe and gift shop for those who want to savor the memories, from T-shirts, posters and jewelry to neon signs and gas pumps. The diner will offer cheesesteak sandwiches, fresh salads, homemade ice cream, milkshakes and root beer floats, Key Lime pie and apple cobbler, along with hamburgers, hot dogs and French fries.
According to Becky Bovell, director of the Charlotte Harbor Visitor & Convention Bureau,
“Muscle Car City Museum is a stunning showplace, a perfect indoor complement to the many outdoor activities in Charlotte Harbor and the Gulf Islands for residents and visitors alike.”
Rick Treworgy fell in love with cars in the 1960s. Unlike most other guys, he has continued to trade and acquire them like some people collect fishing flies. Pontiac GTOs? He has 12 of them. Chevy Corvettes? He owns 64, one from every series from1964 to1975, plus some newer ones. For those who share his passion, a speed shop will be located next to the museum, offering parts and accessories for tricking out your own ride
This museum promises to be a fun exciting and educational experience for young and old,” says Rick. “Car shows and cruises will be a regular happening here, so bring out your toys.”
Muscle Car City Museum
3811 Tamiami TrlPunta Gorda, FL 33950-7900
(941) 575-5959
www.musclecarcity.net
Admission: $10 onetime pass, $30 annual pass. Children under 12 free with adult.
Note to Media: Images available.
About Charlotte Harbor & the Gulf Islands
Located halfway between Tampa and Naples on the Southwest Florida Gulf coast, Charlotte Harbor & the Gulf Islands is a charming collection of nine coastal communities surrounding the state’s second largest harbor. Florida’s premier year-round eco-tourism destination, Charlotte Harbor & the Gulf Islands offers a pristine unspoiled beauty that has served as the backdrop for seven major feature films as well as countless memorable vacations. A haven for outdoor enthusiasts, Charlotte Harbor & the Gulf Islands has been named to SAIL magazine’s “10 Greatest Places to Sail in the United States,” ranked by Golf Digest as “Third Best Place to Live and Play Golf in America,” and rated by MONEY magazine as one of the “Best Places to Live in the South.” The city of Punta Gorda was named in September as one of “Top Ten Places to Retire Healthy” by U.S. News & World Report. Englewood, Fla. was just named as #2 of the Top Ten emerging travel destinations in the U.S. by TripAdvisor.com.
For information about area events, activities and attractions, contact the Charlotte Harbor Visitor & Convention Bureau, 18501 Murdock Circle, Suite 502, Port Charlotte, FL 33948; (941) 743-1900, or call toll free at 1-800-652-6090 for a free Visitor’s Guide; or visit the Web site at www.CharlotteHarborTravel.com.
# # #
Media Contacts:
Jennifer Huber
Tourism Public Relations ManagerCharlotte Harbor Visitor & Convention BureauTel: (941) 743-1900jennifer.huber@charlottefl.com
Deborah Stone
SMITH
DStone@SmithAdv.com
(404) 368-1245
Charlotte Harbor Visitor & Convention Bureau
18501 Murdock Circle, Suite 502
Port Charlotte, FL 33948
941-743-1900, FAX: 941-743-2245
www.CharlotteHarborTravel
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