FINALLY . . . SOME ENCOURAGING NEWS FOR HOUSING!
NATIONALLY, HOME PRICES FALL, AND SALES REBOUND 5.5%, SEPTEMBER VERSUS AUGUST!
Data released today by the National Association of Realtors show existing home sales rose more than expected last month - the highest level of resales of existing homes since mid-2007.
In September, existing home sales rose to a projected annual 5.18 Million pace - a 5.5% increase over August.
Last month, the median national home price dropped 9.0% over this time last year. The current $191,600 median price is the lowest national median since April, 2004. One year ago, the median price across the U.S. was $210,500.
Said NAR Chief Economist Lawrence Yun, "Hopefully, this trend can continue."
Since the beginning of 2008, lenders have considerably strengthened lending standards on home mortgage loans. As a result of the new, higher standards, many potential borrowers with marginal credit have been unable to find a loan. Those with top credit and strong down payments are finding increased fees, interest rates, and loan requirements.
Wall Street expected an annualized resale figure of 4.97 Million homes last month, so the increase far surpasses their expectations. Some feel the drop in mortgage rates, after the Fed takeover of mortgage investors and guarantors Fannie Mae and Freddie Mac last month, and the temporary drop in loan interest rates, may have attracted more buyers into the market. Over the last few weeks, due to the credit turmoil, rates have crept up considerably, now exceeding 6.5% in many areas.
Existing homes-for-sale inventory dropped 1.6% at the end of September, to 4.27 Million homes available for sale across the U.S. This represents a total supply, based on current Absorption Rate figures projected nationally, of 9.9 months. In August, higher home inventory created a 10.6 month supply of homes for sale.
September was the second consecutive month that homes-for-sale inventory dropped across the U.S.
Chicago area figures to follow.
For more info, read Maya Jackson Randall's story in today's Wall Street Journal.
DEAN MOSS & DEAN'S TEAM CHICAGO
