Existing Home Sales,NAR,Home Supply

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Existing Home Sales Unexpectedly Drop In February

Existing Home Sales (Feb 2010 - Feb 2011) Existing Home Sales fell 10 percent last month, according to a report from the National Association of REALTORS®.

On an annual basis, 4.88 million homes were sold in February — the first time annualized home resales dropped below 5,000,000 since November 2010.

An “existing home” is one that’s not considered new construction.

And it’s not just sales volume that’s down. Home inventory is higher, too. At the current pace of sales, the number of months needed to sell the complete home resale inventory rose by 1.1 months, to 8.6 months nationally.

It’s the biggest one-month jump in supply since July 2010 — the month after last year’s federal home buyer tax credit program expired.

The data is somewhat unexpected, too. NAR’s Pending Home Sales report is a reliable predictor for the housing market and, based on recent findings, home sales were projected to climb in February. It’s unclear why they didn’t.

Regardless, the February sales data reveals an interesting breakdown by buyer-type. Notably, the percentage of first-time home buyers in the market grew by more than any other segment.

First-time home buyers : 34% of all sales, +5% from January
Repeat buyers : 47% of all sales, -1% from January
Real estate investors : 19% of all sales, -4% from January

Cash buyers represented 33 percent of all sales, up 1 tick from the month prior.

For Phoenix home buyers, February’s Existing Home Sales data suggests more home supply and lower home prices this spring. However, rising mortgage rates could eliminate the monthly savings attributed to falling home values.

To get the most from your mortgage-buying dollar, lock while rates are low.

Existing Home Sales Jump; Housing Market Shows Spark

Existing Home Sales (Sept 2009-Sept 2010) Existing home sales jumped 10 percent in September, the biggest monthly jump on record and a signal that the housing market may be returning to a normal sales pattern post-$8,000 federal tax credit.

Existing Home Sales counts home resales (i.e. not new construction) and 80 percent of home resales close within 45-60 days. It’s no surprise, therefore, September’s data is strong.

Throughout the July and August, mortgage rates were in free-fall, pushing home affordability to near-record levels. Concurrently, the number of homes available for sale climbed to multi-year highs.

“Deals” were in ample supply this summer and eager Scottsdale home buyers snatched them up.

Some of these deals included “distressed properties”, a categorization that includes homes in various stages of foreclosure or short sale, accounted for 35 percent of all sales, an uptick of 1 percent from August.

According to the National Association of Realtors®, home resales split as follows:

First-time buyers : 32 percent of all buyers
Repeat home buyers : 50 percent of all buyers
Investors : 18 percent of all buyers

By contrast, in November 2009, first-timers accounted for more than half of all resales.

For home buyers, September’s Existing Home Sales report foreshadows a more competitive housing market through the New Year. In addition to rising sales volume, home supplies are down by nearly 2 months from July.

At the current pace of sales, the complete housing stock would be depleted in 10.7 months.

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