February Home Sales Rise for 1st Time in 7 Months

[JoshMclean]

Home resales up first time in seven months
Median sales prices plunge record 8.2% in past year
By Rex Nutting, MarketWatch
Last update: 10:24 a.m. EDT March 24, 2008
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WASHINGTON (MarketWatch) -- Boosted by a record decline in prices, the U.S. housing market showed signs of stability in February, with sales of existing home rising modestly for the first time in seven months, the National Association of Realtors reported Monday.


Resales of U.S. homes and condos rose 2.9% to a seasonally adjusted annualized rate of 5.03 million, ahead of the 4.85 million pace expected by economists surveyed by MarketWatch. See Economic Calendar.
It's the strongest sales pace since October. Sales are down 23.8% compared with a year ago.
Inventories of unsold homes fell 3% to 4.03 million, representing a 9.6-month supply at the February sales pace. Inventories are not seasonally adjusted, but a decline from January to February is unusual. Read more from the NAR.
The median sales price plunged to $195,900, down 8.2% from a year earlier, the largest price decline recorded. Prices of single-family homes fell 8.7% in the past year, also the most since the records begin in 1968.
Since the credit crunch first hit in August, resales have been "stuck" in a narrow range around 5 million, said Lawrence Yun, chief economist for the real estate agents' trade group.
Sales rose in three of four regions, with the West still lagging. Sales rose 11.3% in the Northeast, 2.5% in the Midwest and 2.1% in the South. Sales fell 1.1% in the West.
Median sales prices are down 13.4% in the West, largely because the market for jumbo loans above $417,000 remains frozen, Yun said.
The median sales prices can be affected by the mix of home sold regionally and within different price ranges. Two other home price indexes that track resales of the same home over time will be released on Tuesday.
Sales of single-family homes rose 2.8% in February to 4.47 million, the second increase in a row and the fastest sales pace since August. Inventories of unsold single-family homes fell 5.5% to 3.43 million, a 9.2-month supply.
Sales of condos rose 3.7% in February to 560,000 annualized. Condo sales are down 29.7% in the past year. Inventories of unsold condos rose 14% to 604,000, a 13-month supply.
The Commerce Department will report on sales of new homes on Wednesday, with economists looking for a decline to 575,000 annualized sales from 588,000.
Rex Nutting is Washington bureau chief of MarketWatch.

[SHELLY]

Home resales up first time in seven months
Median sales prices plunge record 8.2% in past year

WASHINGTON (MarketWatch) -- Boosted by a record decline in prices, the U.S. housing market showed signs of stability in February, with sales of existing home rising modestly for the first time in seven months, the National Association of Realtors reported Monday.


Resales of U.S. homes and condos rose 2.9% to a seasonally adjusted annualized rate of 5.03 million, ahead of the 4.85 million pace expected by economists surveyed by MarketWatch.
It's the strongest sales pace since October. Sales are down 23.8% compared with a year ago.

The devil is in the details.


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[Ohio Girl]

Doesn't look like good news to me so how can they say the market is stabilizing? Isn't January typically the slowest month for sales?

[fisher]

A Crossings condo in Watersound just sold for $800,000, less than the original preconstruction pricing back in 01/02.

[SWGB]

A Crossings condo in Watersound just sold for $800,000, less than the original preconstruction pricing back in 01/02.

That's probably a good sign that any upswing in the market is due to the folks holding back until the bottom. Whoops! Did I call the bottom or the beginning of the low end speculators?

[SHELLY]

That's probably a good sign that any upswing in the market is due to the folks holding back until the bottom. Whoops! Did I call the bottom or the beginning of the low end speculators?

Speaking of "The Bottom:"

Florida Association of Realtors Media Releases:

JAN 07: The pace for Florida’s existing home sales remained slow in January, though the inventory of homes began to drop in many markets across the state, according to the Florida Association of Realtors® (FAR). Statewide, sales of single-family existing homes totaled 9,382 last month compared to 12,906 homes sold in January 2006 for a 27 percent decrease. Florida’s median sales price for existing single-family homes in January was $239,300; a year ago, it was $243,200 for a 2 percent decrease.
(Existing home sales likely will gradually rise this year and into 2008, according to the latest housing outlook from the National Association of Realtors® (NAR). “Home sales may appear weak in comparison with the record surge in 2005, but they will be sustained at historically high levels that are in line with long-term demand,” says NAR Chief Economist David Lereah.)
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FEB 07: Florida's housing sector continued to show a more sustainable pace of sales in February, while still-low mortgage rates sparked buyer interest, according to the Florida Association of Realtors® (FAR). Statewide, sales of single-family existing homes totaled 10,779 last month compared to 14,080 homes sold in February 2006 for a 23 percent decrease. Florida’s median sales price for existing single-family homes in February was $235,500; a year ago, it was $242,500 for a 3 percent decrease.
(“If you’re thinking of buying a house, there’s probably not much to be gained by holding out at this point,” says Wayne Archer, director of UF’s Bergstrom Center for Real Estate Studies. “It doesn’t look like prices are going to fall anymore. We see that as a benchmark. When prices maintain the same level as inflation, then we’re probably in some kind of equilibrium. It indicates the market is stabilizing.”)
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MAR 07:Sales of existing homes in Florida remained at a sustainable pace in March, with buyers continuing to see favorable mortgage rates and a range of housing options available across the state, according to the Florida Association of Realtors® (FAR). Statewide, sales of single-family existing homes totaled 13,469 last month compared to 18,751 homes sold in March 2006 for a 28 percent decrease. Florida’s median sales price for existing single-family homes in March was $236,000; a year ago, it was $244,600 for a 4 percent decrease.
(Rising foreclosures are impacting inventories in some markets, according to housing industry analysts, who predict that tighter lending standards and the fallout from subprime loans will slow the housing sector’s recovery. NAR Chief Economist David Lereah noted that most local markets are demonstrating healthy economic activity and thus can absorb the increases in foreclosures.)

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2008

JAN 08: The mortgage credit crunch and a sluggish economy continued to affect the sales pace of existing homes and condominiums in Florida in January. Statewide, sales of existing single-family homes totaled 6,737 last month while 9,360 homes sold in January 2007 for a decrease of 28 percent in the year-to-year comparison, according to the Florida Association of Realtors®. Florida’s median sales price for existing single-family homes last month was $208,600; a year ago, it was $242,700 for a 14 percent decrease.
(In the latest market outlook from the National Association of Realtors®, Chief Economist Lawrence Yun says, “Existing-home sales have moved narrowly since last September, but when the full impact of higher loan limits for conventional mortgages begins to hit the market, there is likely to be a notable rise in home sales and prices. If higher limits are enacted very quickly, we’ll see a faster and more meaningful recovery by expanding safe, affordable financing in high-cost areas – that, in turn, would help to stimulate overall economic activity.”)

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FEB 08: Turmoil in the mortgage market continued to impact Florida’s housing sector in February. Statewide, sales of existing single-family homes totaled 8,310 last month while 11,132 homes sold in February 2007 for a decrease of 25 percent in the year-to-year comparison, according to the Florida Association of Realtors®. Florida’s median sales price for existing single-family homes last month was $198,900; a year ago, it was $237,000 for a 16 percent decrease.
(According to the latest forecast by the National Association of Realtors® (NAR), the volume of existing-home sales is expected to hold steady through late spring, with a gradual recovery during the second half of the year as the mortgage situation improves in high-cost areas. NAR Chief Economist Lawrence Yun says, “The higher loan limits for both FHA and conventional loans will increase consumer choice and provide greater access to lower interest rate mortgages in high-cost regions. Therefore, a notable rise in home sales can be anticipated in the second half of the year.”)
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MAR 08: <looking into crystal ball> Home sales and prices are down again year-over-year.
(NAR Chief Economist Lawrence Yun was asked, "When are we going to reach the bottom?" Yun replied, "Hell if I know!!....I couldn't find my own arse using both hands, a flashlight and a Garmin GPSMap 5012!")

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