Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.09 million in August, and are 9.2 percent higher than in September 2008. Sales activity is at the highest level in over two years.

Lawrence Yun, National Association of Realtors (NAR) chief economist, said favourable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”

Even with the improvement, Yun said the market is under performing. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet,” he said. “We’re getting early indications of price stabilisation, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.”

Early information from a large annual consumer study to be released November 13, shows that first-time home buyers accounted for more than 45 percent of home sales during the past year. A separate practitioner survey shows that distressed homes accounted for 29 percent of transactions in September.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said affordability conditions remain historically high. “Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970, but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market,” he said.

“Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average,” McMillan said.

Northeast
Existing-home sales in the Northeast increased 4.4 percent to an annual level of 950,000 in September, and are 11.8 percent higher than September 2008. The median price in the Northeast was $234,700, down 7.0 percent from a year ago.

Midwest
Existing-home sales in the Midwest jumped 9.6 percent in September to a pace of 1.25 million and are 7.8 percent above a year ago. The median price in the Midwest was $147,600, which is 1.0 percent below September 2008.

South
In the South, existing-home sales rose 9.0 percent to an annual level of 2.06 million in September and are 10.8 percent higher than September 2008. The median price in the South was $153,500, down 7.6 percent from a year ago.

West
Existing-home sales in the West surged 13.0 percent to an annual rate of 1.30 million in September and are 5.7 percent above a year ago. The median price in the West was $219,000, which is 15.0 percent below September 2008.

The American median existing-home price for all housing types was $178,400 in July, which is 15.1 percent lower than July 2008.  Distressed properties continue to weigh down the median price because they typically sell for 15 to 20 percent less than traditional homes.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million units in July and are 5.0 percent above the 4.99 million-unit pace in July 2008.  The last time sales rose for four consecutive months was in June 2004, and the last time sales were higher than a year earlier was November 2005.

Lawrence Yun, National Association of Realtors (NAR) chief economist, said he is encouraged.  “The housing market has decisively turned for the better.  A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales,” he said.

The monthly sales gain was the largest on record for the total existing-home sales series dating back to 1999.

“Because price-to-income ratios have fallen below historical trends, there are more all-cash offers.  In some recovering markets like San Diego, Las Vegas, Phoenix, and Orlando, the demand for foreclosed and lower priced homes has spiked, and a lack of inventory is becoming a common complaint,” Yun said.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.22 percent in July from 5.42 percent in June; the rate was 6.43 percent in July 2008.

First-time buyers purchased 30 percent of homes in July, and distressed homes accounted for 31 percent of transactions.

Regionally, existing-home sales in the Northeast surged 13.4 percent to an annual pace of 930,000 in July, and are 3.3 percent higher than July 2008.  The median price in the Northeast was $236,700, down 15.0 percent from a year ago.

Existing-home sales in the Midwest jumped 10.9 percent in July to a level of 1.22 million and are 8.0 percent above a year ago.  The median price in the Midwest was $157,200, which is 5.9 percent less than July 2008.

In the South, existing-home sales rose 7.1 percent to an annual pace of 1.95 million in July and are 5.4 percent higher than July 2008.  The median price in the South was $164,500, down 7.1 percent from a year ago.

Existing-home sales in the West slipped 1.7 percent to an annual rate of 1.13 million in July, but are 1.8 percent above a year ago.  The median price in the West was $202,300, which is 28.0 percent below July 2008.

Data from National Association of Realtors.

Home sales rose in the Midwest and the South but fell elsewhere, says the National Association of Realtors.

According to NAR President Richard F. Gaylord, the pendulum in the mortgage market has swung too far.

“The difficulty in obtaining a mortgage increased over past couple of months, making it more challenging for creditworthy borrowers to find financing,” he said.

The average house price was $203,100 in August, down 9.5 percent from a year ago when it was $224,400.

“The average home price reflects more transactions related to subprime loans,” Lawrence Yun, NAR chief economist said. “Fewer than 10 percent of homeowners have subprime loans, but these mortgages are accounting for a disproportionately high share of sales in the current market. On the other hand, areas that have had sharp price cuts are seeing a turnaround in sales, which are rising very fast now in parts of California, Florida and Nevada.”

Regionally, the average price in the West fell by a worryingly high 23.9 percent from a year ago to $251,600. House sales fell 5.3 percent in August, but are 4.9 percent higher than August 2007. “The highest concentration of foreclosures is in the West, which is weighing down the average price because many buyers are taking advantage of deeply discounted prices,” Yun said.

House sales in the Midwest rose 0.9 percent in August compared to July but are 12.3 percent below sales volumes a year ago. The average price in the Midwest was $168,000, down 5.6 percent from last year.

In the South, house sales remained flat August, but are still 15.1 percent below a year ago. The average price in the South was $176,500, which is 3.4 percent lower than August 2007.

In the Northeast, house sales dropped 6.6 percent in August, and are 15.0 percent below a year ago. The average price in the Northeast was $271,000, down 3.8 percent from August 2007.

Yun does not believe property prices to stabilise until next year and expects only a modest gain of two or three percent in 2009. Some realtors believe even this modest expectation is more than they can realistically expect, given the current financial crisis.

Despite a variety of attempts by the Ben Bernanke, chief of the Federal Reserve, to encourage banks to lend more, America’s financial institutions have kept a tight rein on mortgage lending. The average interest rate on a typical 30-year American mortgage has been stuck above six percent for most of 2008.

Existing-home sales – including single-family, townhouses, condominiums and co-ops – increased 3.1 percent to a seasonally adjusted annual rate of 5.00 million units in July, 13.2 percent lower than the 5.76 million-unit pace in July 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate said the up-and-down pattern may break soon. “We hope the new tools in the hands of home buyers from the recently enacted housing stimulus package will spark a sustained sales uptrend in the months ahead,” he said. “Buyers who’ve been on the sidelines should take a closer look at what’s available to them now in terms of financing and incentives. Given some of the inventory on the market, we also strongly encourage buyers to get a professional home inspection.”

The American median existing-home price for all housing types was $212,400 in July, down 7.1 percent from a year ago when the median was $228,600.

Lawrence Yun, NAR chief economist, said home prices in some regions could soon increase. “Sales have picked up significantly in several Florida and California markets. Home prices generally follow sales trends after a few months of lag time,” he said. “Still, inventory remains high in many parts of the country and will require time to fully absorb. We expect more balanced conditions in 2009 and will eventually return to normal long-term appreciation patterns.”

Analysis of NAR price data since 1968 shows home prices normally rise 1 to 2 percentage points above the overall rate of inflation, building wealth over the typical period of homeownership.

Total housing inventory at the end of July rose 3.9 percent to 4.67 million existing homes available for sale, which represents an 11.2-month supply at the current sales pace, up from a 11.1-month supply in June. The rise in supply results from a sharp increase in condo inventory; the single family supply declined.

Single-family home sales rose 3.1 percent from June but are 12.4 percent below the 5.01 million-unit level a year ago. The median existing single-family home price was $210,900 in July, down 7.7 percent from July 2007.

West
Regionally, existing-home sales in the West jumped 9.7 percent in July to a level of 1.13 million and are 0.9 percent higher than July 2007. The median price in the West was $273,200, down 22.2 percent from a year ago.

Northeast
In the Northeast, existing-home sales rose 5.9 percent to an annual pace of 900,000 in July, but are 11.8 percent below a year ago. The median price in the Northeast was $278,700, which is 4.9 percent lower than July 2007.

Midwest
Existing-home sales in the Midwest increased 0.9 percent to an annual rate of 1.12 million in July, but are 17.0 percent lower than July 2007. The median price in the Midwest was $175,400, up 1.0 percent from a year ago.

South
In the South, existing-home sales slipped 0.5 percent to an annual pace of 1.85 million in July, and are 18.1 percent below a year ago. The median price in the South was $179,300, down 3.5 percent from July 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate, said there is something of a quandary in the current market. “A recent online survey of Realtors shows nearly a quarter of potential home buyers are waiting on the sidelines,” he said. “However, timing the market can be very tricky, which is why home buyers should always have a long-term view to build wealth.”

Total housing inventory at the end of June rose 0.2 percent which represents an 11.1 month supply at the current sales pace, up from a 10.8 month supply in May.

Lawrence Yun, NAR chief economist, said first-time home buyers are critical to the health of the housing market. “About four in 10 homes are purchased by first-time buyers, which frees existing owners to trade up,” Yun said. “With many potential first-time home buyers on the sidelines, a first-time buyer tax credit would have a significant positive impact on both housing and the economy. Combined with permanent increases to mortgage loan limits and enhancing the FHA loan program, the housing stimulus package working its way through Congress would go a long way toward helping consumers and boosting the overall economy.”

Yun said there is a downward distortion in the price data. “With short sales and foreclosures accounting for approximately one-third of transactions, it’s hard to make an apples-to-apples comparison with a year ago when they were only a minor portion of the market,” he said.

Despite the overall sales decline, unpublished snapshot data shows existing-home sales rising significantly from a year ago in Bakersfield, California; Fort Myers, Florida; and Las Vegas.

“Sales are now beginning to pick up in Orlando, Florida, Phoenix, and Oakland, California,” Yun said. “Interestingly, sales fell in Atlanta, Houston, and Kansas City, Missouri, despite affordable home prices and solid local employment conditions.”

The median existing single-family home price was $213,800 in June, which is down 6.7 percent from a year ago.

The median existing condo price was $224,200 in June, which is 2.2 percent lower than June 2007.

West
Existing-home sales in the West rose 1.0 percent in June to a pace of 1.03 million but are 6.4 percent lower than a year ago. The median price in the West was $288,400, which is 17.2 percent below June 2007.

South
In the South, existing-home sales fell 3.1 percent to an annual rate of 1.85 million in June, and are 18.1 percent below June 2007. The median price in the South was $185,300, down 2.4 percent from a year ago.

Midwest
Existing-home sales in the Midwest declined 3.4 percent to an annual pace of 1.12 million in June, and are 17.6 percent below a year ago. The median price in the Midwest was $175,300, up 2.8 percent from June 2007.

Northeast
In the Northeast, existing-home sales fell 6.6 percent to an annual rate of 850,000 in June, and are 15.8 percent below June 2007. The median price in the Northeast was $256,700, down 12.6 percent from June 2007.

Existing-home sales – including single-family, townhouses, condominiums and co-ops – increased 2.0 percent to a seasonally adjusted annual rate of 4.99 million units in May but are 15.9 percent below the 5.93 million-unit pace in May 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate, said buyers are seeing value in the current housing market. “Home buyers are starting to get off the fence and into the market, drawn by drops in home prices in many areas and armed with greater access to affordable mortgages,” he said. “Today’s buyer plans to stay in a home for 10 years, which is a good strategy for building long-term wealth.”

The American median existing-home price for all housing types was $208,600 in May, down 6.3 percent from a year ago when the median was $222,700.

Lawrence Yun, NAR chief economist, said there’s still a lot of inventory in the market. “The large supply of homes on the market clearly favours buyers, and it should take several months to draw the inventory down,” he said. “Stabilisation in home prices can only occur with buyers returning to the market, so we are encouraged by rising home sales, particularly in distressed markets. Foreclosures and short sales appear to be a larger part of the market, particularly in California, and are creating a drag on current home prices.”

Total housing inventory at the end of May fell 1.4 percent to 4.49 million existing homes available for sale, which represents a 10.8-month supply at the current sales pace, down from a 11.2-month supply in April.

Although conditions remain mixed around the United States, unpublished snapshot data shows a number of areas are experiencing much higher sales activity than May 2007, including Sacramento, the San Fernando Valley and Monterey County in California; Sarasota, Florida; and Battle Creek, Michigan.

“Keep in mind that the volume of home sales is the primary driver of economic activity that is tied to housing,” Yun said. “It’d be premature to say the improvement marks a turnaround. The market is fragile, so a first-time home buyer tax credit and a permanent raise in loan limits would be important steps to get the housing engine humming.”

Single-family home sales rose 1.6 percent to a seasonally adjusted annual rate of 4.41 million in May from 4.34 million in April, but are 14.5 percent below the 5.16 million-unit pace in May 2007. The median existing single-family home price was $206,700 in May, which is 6.8 percent below a year ago.

Existing condominium and co-op sales increased 5.5 percent to a seasonally adjusted annual rate of 580,000 units in May from 550,000 in April, but are 24.6 percent lower than the 769,000-unit level a year ago. The median existing condo price was $223,400 in May, down 2.1 percent from May 2007.

Midwest
Existing-home sales in the Midwest rose 5.5 percent in May to a pace of 1.16 million but are 16.5 percent lower than a year ago. The median price in the Midwest was $165,300, which is 0.7 percent below May 2007.

Northeast
In the Northeast, existing-home sales rose 4.6 percent to an annual rate of 910,000 in May, but are 15.0 percent below May 2007. The median price in the Northeast was $278,000, down 2.4 percent from a year ago.

West
Existing-home sales in the West increased 2.0 percent to an annual pace of 1.02 million in May, but are 12.8 percent below a year ago. The median price in the West was $286,600, which is 16.0 percent lower than May 2007.

South
In the South, existing-home sales slipped 0.5 percent to an annual rate of 1.91 million in May, and are 17.0 percent below May 2007. The median price in the South was $175,000, down 4.3 percent from May 2007.

Existing house sales – including single-family, townhomes, condominiums and co-ops – declined 1.0 percent to a seasonally adjusted annual rate of 4.89 million units in April, 17.5 percent below the 5.93 million-unit level in April 2007.

Lawrence Yun, NAR chief economist, said eliminating restrictive policies should be a big help to home buyers. “I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant,” he said. “Also, a recent notable drop in interest rates on conforming jumbo loans will help consumers in high-cost markets like California and New York.”

The American median existing house price for all housing types was $202,300 in April, which is 8.0 percent below a year ago when the median was $219,900. Total housing inventory at the end of April rose 10.5 percent to 4.55 million existing houses available for sale, which represents an 11.2 month supply at the current sales pace, up from a 10.0 month supply in March.

Single-family house sales slipped 0.5 percent to a seasonally adjusted annual rate of 4.34 million in April from 4.36 million in March, and are 16.1 percent below the 5.17 million-unit level recorded one year ago. The median existing single-family house price was $200,700 in April, down 8.5 percent from April 2007.

Existing condominium and co-op sales fell 5.2 percent to a seasonally adjusted annual rate of 550,000 units in April from 580,000 in March, and are 27.9 percent below the 763,000-unit pace in April 2007. The median existing condo price was $214,900 in April, which is 3.7 percent below a year ago.

West
Regionally, existing house sales in the West rose 6.4 percent in April to a level of 1.00 million but are 15.3 percent below a year ago. The median price in the West was $285,700, which is 16.7 percent lower than April 2007.

South
In the South, existing house sales were unchanged from March at an annual rate of 1.92 million in April, but are 18.6 percent below April 2007. The median price in the South was $170,800, down 5.1 percent from a year ago.

Northeast
Existing house sales in the Northeast fell 4.4 percent to an annual pace of 870,000 in April, and are 14.7 percent below a year ago. The median price in the Northeast was $262,000, which is 7.7 percent below April 2007.

Midwest
In the Midwest, existing house sales were at an annual rate of 1.10 million in April, which is 6.0 below March and 19.7 percent lower than April 2007. The median price in the Midwest was $159,100, down 2.9 percent from April 2007.

Lawrence Yun, NAR chief economist, said the market is performing unevenly. “Though mortgage rates are at historically low levels, some borrowers are facing restrictive lending practices in declining markets,” he said. “At the same time, many buyers continue to bide their time with a large number of homes to choose from, while other potential buyers remain on the sidelines.”

The American median existing-home price for all housing types was $200,700 (£101,400) in March, down 7.7 percent from a year ago when the median was $217,400 (£109,800).

A mix of market conditions continues around the country, but areas showing healthy price gains include Des Moines, Iowa; Austin, Texas; and Durham, North Carolina.

Total housing inventory rose 1.0 percent at the end of March percent to 4.06 million existing homes available for sale.

Regionally, existing-home sales in the Northeast rose 2.2 percent to an annual pace of 910,000 in March, but are 18.8 percent below March 2007. The median price in the Northeast was $284,300 (£143,600), up 4.6 percent from a year ago.

Existing-home sales in the West rose 2.2 percent in March to a level of 940,000 but are 22.3 percent below a year ago. The median price in the West was $285,100 (£144,000), which is 14.7 percent lower than March 2007.

In the South, existing-home sales fell 3.5 percent to an annual rate of 1.92 million in March and are 20.0 percent below March 2007. The median price in the South was $167,200 (£84,400), down 7.1 percent from a year ago.

Existing-home sales in the Midwest dropped 6.5 percent to an annual rate of 1.16 million in March, and are 15.9 percent below a year ago. The median price in the Midwest was $152,600 (£77,100), down 5.3 percent from March 2007.

The average (median) price for all housing types was $208,400 in December, down 6.0 percent from a year earlier, according to the National Association of Realtors.

House sales, including single-family, townhouses, condominiums and co-ops, dropped two percent to a seasonally adjusted annual rate of 4.89 million in December from 5.00 million in November.  Sales were 22 percent below the levels seen a year ago.

The total number of properties sold in America in 2007 was 5,652,000, significantly lower than the previous year’s 6,478,000 sales.

Lawrence Yun, chief economist at NAR, said the market is experiencing uncharacteristic weakness.

“Home sales remain weak despite improved affordability conditions in many parts of the country, but we could get a quick boost to the market if loan limits are raised in combination with the bold cut in the Fed funds rate. Home prices are lower, mortgage interest rates continue to decline and incomes are higher, but many potential buyers are delaying a purchase.”

According to Freddie Mac, the average rate for a 30-year fixed-rate mortgage fell to 6.10 percent in December from 6.21 percent in November.  Last week, Freddie Mac reported the 30-year fixed rate had continued to fall, dropping to 5.69 percent.

The number of homes for sale in America at the end of December fell to 3.91 million, which represents a 9.6-month supply at the current sale numbers, down from a 10.1-month supply in November. Lawrence Yun commented: “The fall in inventory in December is encouraging, but inventories remain elevated and buyers have a clear edge over sellers in many markets.”

The median single-family house sale price was $206,500 in December, down 6.5 percent from a year earlier.

House sales in the Northeast dropped 4.6 percent to an annual rate of 830,000, and are 22.4 percent below a year ago.  The average sale price in the Northeast was $258,600, down 8.9 percent from in December 2006.

The number of houses sold in the South slipped 1.0 percent to an annualized rate of 1.97 million in December, 21 percent less than a year ago.  The average house price in the South was $173,400, down 4.1 percent from a year ago.

In the West, house sales fell 2.1 percent to an annual rate of 940,000, 24.8 percent below December 2006.  The average house price in the West was $309,800, down 11.1 percent on last year.

House sales in the Midwest dropped 1.7 percent to 1.16 million annualized, 20.5 percent less than last year.  The average sale price in the Midwest was $159,800, 3.9 percent lower than December 2006.

Lawrence Yun, NAR chief economist, said:

“Near term, existing-home sales should continue to hover in a narrow range, just as they have since September, and that’s good news because it’ll be a further sign that the housing market is stabilizing. Mortgage interest rates are near historic lows and the most current data shows decelerating price declines, along with a modest reduction in the number of homes on the market. There are large local variations in house prices… nearly two-thirds of metro areas are showing price increases. Among the many metros experiencing healthy local price gains are Farmington, New Mexico; Reading, Pennsylvania; Columbia, South Carolina; and Fargo, North Dakota.”

The median house price for all housing in America was $210,200 in November, down 3.3 percent from November 2006 when it was $217,300.

Single-family home sales rose 0.7 percent. The median existing single-family house price was $208,700 in November, down 3.7 percent from a year earlier.

Regional Numbers

The number of houses sold in the South fell 2.0 percent to an annual rate of 1.99 million in November, 19 percent below a year ago. The median price in the South was $174,200, 2.5 percent below November 2006.

House sales in the West increased 10.3 percent in November to 960,000, 25 percent below a year ago. The median price in the West was $325,800, 6.8 percent lower than last year.

In the Midwest, house sales were unchanged at an annual rate of 1.18 million, 16.9 percent below November 2006. The median price in the Midwest was $163,000, down 0.5 percent from a year ago.

House sales in the Northeast fell 3.3 percent to 870,000 in November, 19.4 percent below November 2006. The median price in the Northeast was $258,300, down 3.2 percent from a year ago.