Though it varies in different real estate markets around the country, it's clear the housing market is continuing to suffer, even while showing minor signs of recovery in some parts of the nation.
New Report Shows Sinking Market
The National Association of Realtors reported this week that sales of previously occupied homes dropped 0.6% in the past month to another low point- the lowest level since last July. Existing-home sales declined slightly in February 2010, with modest gains in the Northeast and Midwest offset by softer sales in the South and West, according to the National Association of Realtors®.
National Association of Realtors Economist Comments
“Some closings were simply postponed by winter storms, but buyers couldn’t get out to look at homes in some areas and that should negatively impact near-term contract activity,” said Lawrence Hun, chief economist for NAR. “Although sales have been higher than year-ago levels for eight straight months and home prices are much more stable compared to the past few years, the housing recovery is fragile at the moment.”
Average Home Prices Down For Year
The national median existing-home price for all housing types was $165,100 in February 2010, which is 1.8% below February 2009. Distressed homes, generally sold at discount, accounted for 35% of sales last month. According to Freddie Mac, the rate for a 30-year, conventional, fixed-rate mortgage dipped to 4.99% in February from 5.03% in January; the rate was 5.13% in February 2009. Single-family home sales declined 1.4% to a seasonally adjusted annual rate of 4.37 million in February from a pace of 4.43 million in January, but are 4.3% higher than the 4.19 million level a year ago. The median existing single-family home price was $164,300 in February, down 2.1% from February 2009.
Tax Credit Deadline Looms
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said some buyers are just beginning to realize the urgency of acting before the contract deadline for the tax credit. “If home buyers want this tax credit there is literally no time to waste,” she said. “Most buyers spend several months looking at a dozen homes before they make a contract offer, but less than six weeks are left before the April 30 contract deadline. If you’re sure about the kind of home you want and the neighborhood where you’d like to live, you need to begin working with a Realtor® now to help you find what you want, negotiate on your behalf and ensure that you meet the necessary deadlines, including loan qualification."
Hopefully for those selling, home sales will recover from this economic downturn. But on the upside- now is definitely the time to buy to get excellent housing prices.
Mary McCarthy - Mary T. McCarthy is the blogger at pajamasandcoffee.com and Editor of Chesapeake Family magazine.
