The nation’s existing-home sales increased 10 percent in September, signaling the beginning of a sales recovery, according to the National Association of Realtors (NAR).
There were 4.53 million existing homes sold in September compared to 4.12 million in August, according to a statement. However, it is a 19.1 percent decrease from the same time period last year.
"A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium," said Lawrence Yun, NAR chief economist. "But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions."
The national median existing-home price for all housing types was $171,700 in September, 2.4 percent below a year ago, according to NAR. Distressed homes accounted for 35 percent of those sales compared with 34 percent in August and 29 percent in September 2009.
"A decade ago, mortgage rates were almost double what they are today, and they’re about one-and-a-half percentage points lower than the peak of the housing boom in 2005," said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Assoc. in Tucson, Ariz. "In addition, home prices are running about 22 percent less than five years ago when they were bid up by the biggest housing rush on record."
Total housing inventory at the end of September fell 1.9 percent to 4.04 million existing homes available for sale, which represents a 10.7-month supply at the current sales pace, down from a 12-month supply in August, according to a statement. Raw unsold inventory is 11.7 percent below the record of 4.58 million in July 2008.
"Vacant homes and homes where mortgages have not been paid for an extended number of months need to be cleared from the market as quickly as possible, with a new set of buyers helping the recovery along a healthy path," said Yun. "Inventory remains elevated and continues to favor buyers over sellers. A normal seasonal decline in inventory is expected through the upcoming months."
Single-family home sales increased 10 percent to 3.97 million in September from 3.61 million in August, but are 19.5 percent below the 4.93 million level in September 2009, according to a statement. The median existing single-family home price was $172,600, down 1.9 percent from a year ago.
Existing condominium and co-op sales rose 9.8 percent to 560,000 in September from 510,000 in August, but are 16.2 percent lower than the 668,000-unit level one year ago, according to NAR. The median existing condo price was $165,400, down 6.2 percent from September 2009.
Existing-home sales in the Northeast increased 10.1 percent to 760,000 in September but are 20.8 percent below September 2009, according to a statement. The median price in the Northeast was $239,200, 1.4 percent below a year ago.
