Housing prices are still held low due to the increase of foreclosed homes and the increased amount of home inventory on the market.
• NAR found that last month the amount of existing home sales fell about 0.6%.
• Severe winter weather and the soon approaching date for the tax credit are some of the contributing factors.
• Median price of homes last month was $165,100, which is 1.8% less than the amount a year ago.
• Distressed homes contributed to 35% of sales in February
• Existing home sales inventory increased to 3.59 million
• Currently, 3.59 million more homes on the market
o Accounts for about an 8.6 month supply
Previously owned homes sold at a seasonally adjusted annual rate of 5.02 million units in February, down from 5.05 million in January. That was 7% higher than the 4.69-million-unit pace of February 2009.
Sales are much better compared to a year ago, but still not promising for a better housing market in the near future. Most want to know what the reports will be after the tax credit expires at the end of next month. If and when the tax credit expires will there be less people buying homes? Will this cause housing prices to drop? If the unemployment rate drops, maybe we will see an increase of buyers in the housing market rather than a decline after the tax credit expires.
Contributor, designer & admin for JohnHart Gazette.
