“Contract activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit but remains comfortably above a year ago, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 16.0 percent to 96.0 from an upwardly revised 114.3 in October, but is 15.5 percent higher than November 2008 when it was 83.1.”
Despite the increase in real estate sales in 2009, commissions earned by real estate brokers and agents reached a seven year low. The National Association of Realtors reported that nearly 75% of homes sold last month were $250,000 or less. Housing tax credits and foreclosures are expected to lower the national median home price to $172,700 this year. This will be a record drop of 13% percent.
DHW asks: Would you consider a career in real estate?
Analysts are forecasting a slow winter for home sales. In addition to the bitterly cold weather much of the nation is encountering this season, experts feel the extended tax credits and slightly higher interest rates will keep home sales (and prices) on ice. Sales are expected to come back to life next spring.
According to the National Association of Realtors, November home sales skyrocketed 7.4 percent. Analysts were predicting an increase of 2.9 percent. The housing tax credits are credited with the spike in sales.
There are 129 days until the housing tax credits run out. For more details about the housing tax credits, visit our Housing Tax Credit page.
DHW asks: Do you think homes sales will continue to exceed expectations?
The National Association of Realtors reported its seasonally adjusted index of sales agreements inched up 3.7 percent from September to October to 114.1. Economists surveyed by Thomson Reuters predicted the index would sink to 109.5.
The housing industry’s index represents offers written and accepted for existing properties. All parts of the country saw a year-over-year increase in pending home sales.
Housing tax credits and record low interest rates are credited with boosting sales. First-time homebuyers qualify for a tax credit of up to $8,000, while those who have owned their current home for at least five years qualify for a tax credit of up to $6,500. Buyers must have a signed sales agreement by April 30, 2010, and close by the end of June 2010 to qualify.
DHW asks: Will you take advantage of the houisng tax credits?
“Home sales far exceeded expectations last month, surging to the highest level in 2 1/2 years as first-time buyers rushed to take advantage of an expiring tax credit.
The National Association of Realtors said Monday that home resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October, from a downwardly revised pace of 5.54 million in September.”
As any good Realtor will tell you, price moves a home. But sometimes Realtors (as well as sellers) are afraid to take their own advice. As housing evaluations have dropped around the country, listing prices have been slow to follow. To get the job done, and your home sold, a price reduction might be in order. However, nothing beats pricing a home correctly from the start. Even with price reductions, you may never fully catch up the the market. No groundhog has popped its head up to officially declare the housing decline over.
Here is a slide show of cities leading the country in price reductions.
A survey released last week by Move.com, a real estate website, shows 1 in 5 Americans plan on purchasing a home within the next year. The survey also revealed these buyers are most likely to be 34 years of age or younger and live in the South or West.
It should be noted this survey was taken before the housing tax credit extensions were announced.
DHW asks: Do you intend to buy a home within the next year?
Lawrence Yun, chief economist for the National Association of Realtors, predicted on Friday that home prices will rise in 2010. If his prediction holds true, home prices will see their first increase in four years.
Yun pointed to the current price-income ratio of 2.4 as evidence of pent-up demand in the market. The price-income ratio accelerated from a norm of 2.6 in 1984-2001 to 3.3 in 2005. This means the price-income ratio has dipped below its pre-bubble rate.
The housing tax credit extension is also seen as a contributing factor to rising homes prices next year.
DHW asks: Do you think home prices will rise in 2010?
Critics of the Housing Tax Credit were quieted, if only briefly, when the National Association of Realtors (NAR) released data for third quarter home sales. According to the trade group, home sales increased by nearly 6% over this same time last year. Despite the spike in sales, prices have fallen more than 11% during the same period. The U.S. median existing single-family price for the third quarter was $177,900.
Opponents of the housing tax credit feared an inflationary reaction in home prices. Although housing inventories are down, existing units still outweigh the demand.
NAR chief economist, Lawrence Yun, predicts home prices will stabalize next spring. His prediction may be overly optimistic. Foreclosures and short sales made up 30% of thrid quarter sales. There is no real evidence to suggest foreclosures will take a breather in 2010.
DHW asks: Do you see a bottom to the housing market?