Rising Sales in Most States, and Rising Prices in Many Metros (at Last!)

Rising Sales in Most States, and Rising Prices in Many Metros (at Last!)

by NAR Research Staff



There was good news for most states in the 4th quarter of 2009. Existing-home sales rose from the 3rd to 4th quarter in 48 states and the District of Columbia. In fact, 32 states experienced double-digit quarterly gains. On a year-over-year basis, resales were higher in 49 states and the District, with all but three posting double-digit annual increases.



According to the latest quarterly statistics released by NAR Research, total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate of 6.03 million in the fourth quarter - up from 5.29 million in the third quarter. Existing-home sales rose 27.2 percent from their 4th quarter 2008 pace of 4.74 million units. As a further sign of housing market stability, distressed properties accounted for 32 percent of fourth quarter transactions; that is down from



37 percent a year earlier.



Metropolitan Area Home Prices

There was some good news on the home price front as well. In the fourth quarter, 67 out of 151 metropolitan statistical areas boasted higher median existing single-family home prices compared with prices registered in the fourth quarter of 2008. In the third quarter only 30 MSAs showed annual price increases. Sixteen metros experienced double-digit increases. On a national basis, the news was not quite as good. The national median existing single-family home price was $172,900, 4.1 percent below the price registered in the fourth quarter of 2008. But on the positive front, that was the smallest price decline in over two years. It should be noted that the most recent monthly price data showed a broad stabilization in home prices.



In the condo sector, metro area condominium and cooperative prices - covering changes in 54 metro areas - showed the national median existing-condo price was $177,300 in the fourth quarter, down 4.8 percent from the fourth quarter of 2008. Eleven metros showed increases in the median condo price from a year earlier. In the third quarter only four metros experienced annual price gains.



Regional Differences

All four regions of the country saw rising home sales. Existing-home sales in the Northeast rose 11.1 percent from the 3rd quarter to 1.03 million units; Northeast resales were 33.6 percent higher than a year ago. The median existing single-family home price in the Northeast declined 5.6 percent to $234,900 in the fourth quarter from the same quarter in 2008, but with widely varying conditions. Markets with lower median prices that have avoided wide swings, such as Buffalo, are generally showing consistent price gains. And even some of the higher cost areas such as Nassau-Suffolk (NY) and Boston (MA) are exhibiting signs of stabilization.



In the Midwest, existing-home sales jumped 14.5 percent (on a quarter to quarter basis) to a pace of 1.38 million units and were 29.9 percent above a year ago. The median existing single-family home price in the region rose 1.1 percent from a year ago to $141,100. In fact, the Midwest accounted for the majority of metro areas experiencing double-digit price gains.



Existing-home sales in the South increased 13.8 percent from the 3rd to the 4th quarter of 2009 to an annual rate of 2.23 million units; resales in the region were 28.2 percent higher than in the fourth quarter of 2008. The median existing single-family home price in the South was $153,000 in the fourth quarter, down 2.4 percent from a year earlier.



The West experienced a 16.2 percent increase in existing-home sales, posting an annual rate of 1.38 million units. On a year-over-year basis, resales in the region were up 18.2 percent. The median existing single-family home price in the West did decline 8.9 percent from a year ago (to $227,200), but many metros showed price gains.



Behind the Numbers

What's driving the rising home sales and stabilizing prices? The dominant factor is the home buyer tax credit. Buyers are responding to the program, and that - combined with record low mortgage interest rates - are attracting purchasers to the market.



One cautionary issue down the road will face buyers. They will need to accelerate their buying plans if they want to qualify for the tax credit. While repeat buyers do not have to sell their existing home, all buyers must occupy the property they purchase as a primary residence in order to qualify for the tax credit. Buyers who have a contract in place by April 30, 2010, have until June 30, 2010, to finalize the transaction to get a credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.



Near-term market conditions will remain favorable. While interest rates are expected to trend up later this year, affordability continues at healthy levels. In general, housing market conditions are good - home prices are steadying and inventory, while drawing down, continues to be plentiful offering potential buyers a variety of options.



For the latest statistics on existing-home sales by state and median home prices by metropolitan area, visit






Call us with all of your Real Estate Needs! 616.366.5240
Have a Wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
http://www.grhomelink.com/
Email: jeff@grhomelink.com
Email: malinda@grhomelink.com

January, 2009 vs. January, 2010...Things are Improving!!!

“On a Positive Note”


Dear Friends,

I hope that you find the first edition of my monthly newsletter to be very beneficial. The information provided will include an update on the Grand Rapids real estate market, as well as current homebuyer incentives. I am excited to provide this “positive” information to you, while always welcoming your feedback. With that said, “The Grand Rapids real estate market is recovering!”

During the month of January, 2009, 363 homes sold in Kent and Ottawa counties for an average sale price of $105,387.00. Average days on the market were 88 days. Total inventory of listed homes was 5,657. This past January’s (2010) numbers were more exciting; 384 homes sold for an average sale price of $122,782.00. Average days on the market fell to 84 days. Total inventory of homes listed was 4,518.

This is truly wonderful news for our local economy!

Please remember, the up to $8,000 tax credit for 1st time homebuyers has been extended to contracts dated on or before 4/30/10. This is money directly in your pocket, and you can receive the credit within weeks of closing.

A new feature of the tax credit allows anyone purchasing a primary residence to receive a credit of $6,500. You do not need to be a 1st time buyer. That’s right, if you have owned a home for 5 of the last 8 years as a primary residence and purchase another primary residence, you will receive up to $6,500 within weeks of closing. You may have sold your home previously; rent it, sell it, or keep it and still qualify for this program. As with any government program there is some fine print which I am very familiar with and would be more than happy to discuss with you.

Interest rates are great! Rates are at historic lows, but are expected to increase this spring as the Fed eases out of the mortgage backed securities market. There are still zero and low down payment programs available. Now is the time to make your move!

Thank you again for your business and referrals. If there is ever anything that I can do to assist you or anyone you know, please don’t hesitate to contact me. Referrals of Listing or Buyer clients directly from friends and past customers are the heartbeat of my business! Simply give me a call with their name and I will do the rest.



**Information provided by the Grand Rapids Association of Realtors/Equal Housing Opportunity. If you have a brokerage relationship with another agency, this is not intended as a solicitation. All information deemed reliable but not guaranteed.


Call us with all of your Real Estate Needs! 616.366.5240
Have a Wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
GR Homelink Website: http://www.grhomelink.com/
Email: jeff@grhomelink.com
Email: malinda@grhomelink.com

GREAT GRANDVILLE FIND FOR UNDER $100,000.00

Call us with all of your Real Estate Needs! 616.366.5240
Have a Wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
GR Homelink Website
Email Jeff
Email Malinda