• Sales fall 7.2% last month for existing home sales, still considered higher than a year ago
o January: 5.05 million units sold (4.53 million units, January, 2009)
o December: 5.44 million units sold
• 11.2% decrease in newly built home sales
• Deals that closed in January were contracts that were signed in November and December
• Housing inventory: down from 3.44 to 3.27 million
• Sales are expected to increase as the date for the tax credit gets closer.
• Existing home price median: $164,700 for January, 2010 (same as a year ago)
• 40% of the market in January consisted of first time buyers
• Investors accounted for 17% of transactions
• Repeat buyers were the majority of the market with 43%
• Condo/Co-op reports have seen the most dramatic changes and experts do not have answers for this type of change. Sales increase 8.5% in November, decreased 16.2% in December and dropped 7.2% last month.
Surprisingly, there are many investors who are all cash buyers are considered competition for first time buyers and those in need of a mortgage. They are competing with others for the foreclosed properties, which have the lowest prices in certain locations.
Interest rate update from Freddie Mac
• 30-year, conventional, fixed rate: 5.03%
o 4.93% in December
o 5.05% January 2009
Around the country: Existing home sales
• Northeast: 10.9% drop, still 22.4 percent higher than a year ago
o Median price: $245,300
• Midwest: 6.9% decrease, 8.0% higher than last year
o Median price: $130,300
• Southern areas: 7.4% decline
o Median price: $140,200
• West: 5.2% decrease compare to prior year
o Median price: $203,400
The tax credit and job market are expected to determine the increase or decrease in future reports. The reports most anticipated is the report for the second and third quarters, when the tax credit is no longer available. On the other hand, if the job market sees some improvement not only is the real estate market expected to prosper the rest of the economy will as well.
Contributor, designer & admin for JohnHart Gazette.
