October 2009 Existing-Home Sales Score Another Gain While Home Inventories Keep Declining

Our Thanksgiving Wishes To YouMy sources at the National Association of Realtors in Washington D.C. report continuing good news in existing-home sales for October 2009. Existing-home sales include; single family homes, townhouses, condominiums, and co-ops. Lawrence Yun, NAR’s chief economist was suprised by the size of October’s gain. The increase was 10.1% for October ’09 at 6.10 million units vs. September ’09 at 5.54 million. This represents a 23.5% increase above October 2008 which registered 4.94 million units. The October 2009 numbers are the highest indicators of sales activity since February 2007 set the record at 6.55 million untis. The record sales are methodically working down the large inventory of homes for sale. As this trend continues, the oversupply of homes on the market will drop and home pricing could stabilize. Economist Yun feels that much of the current home buying has been fueled by the deadline of the original first-time buyer tax credit. Initially,  this was set to expire at the end of November 2009. Congress’s extension of the home buyer credit until April 2010 will help bring more home contracts to close. NAR’s research estimates that there is still pent-up demand for homes, and buyers will utilize the tax credit. However, at some point a decline from these increases in home buying is very likely to occur. Historically low interest rates are also helping to motivate today’s home buyers. A 30 year conventional fixed rate mortgage in October ’08 was 6.20%, in September ’09 it was 5.06%, in October ’09 it was 4.95% and in November ’09 it dropped to 4.83%

NAR President ,Vicki Cox Golder out of Tuscon, AZ , says that activity by first-time buyers is causing unique conditions in housing markets across the country. Foreclosure properties are rapidly getting purchased, with many lower end units getting multiple bids. Low-end home inventory is in demand and it is important to work with qualified realtors to get what you want. The inventory of homes on the market has dropped to an estimated 7 month supply. That is the lowest supply in 2 1/2 years. The national median price for existing homes is down, because of strong pressure from distressed properties. Foreclosures and other distressed real estate are deeply discounted and they tend to force other properties to be more competitive in their pricing as well. All regions of the country are up in existing-home sales, but the median pricing of homes is down from last year.

If you are contemplating, buying or selling real estate in the Great Smoky Mountains area, it is a good time. Inventories are dropping, but they still offer a great selection. Buying activity fueled by the first-time buyer tax credit is good and mortgage rates are very attractive. Let the local market knowledge, and the professional expertise of the Jason White Team help you buy or sell your real estate in the Smokies. View my featured and latest listings now.

 

Here are a few of my featured listings. Condos in the middle of Downtown Gatlinburg. You can leave your car for your vacation and walk or ride the trolley. The trolley goes to Dollywood and several parts of the National Park. Aquarium is just two blocks away by foot.

Hugh Price Reduction in Gatlinburg!
Hugh Price Reduction with great location!
Type: Condo
Location: Gatlinburg ,Tennessee
Price: $199,900
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Relaxing Garden Patio- Gatlinburg Condo!
Recently refurbish in excellent taste!! This downtown Gatlinburg condo is located on ground floor and corner unit for privacy. Easy access to private outdoor pool.
Type: Condo
Location: Gatlinburg ,Tennessee
Price: $199,900
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Gatlinburg Condo Close to Pool!
This unit is close to the pool on ground level. It is refurbished and professionally decorated.
Type: Condo
Location: Gatlinburg ,Tennessee
Price: $199,900
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Refurbished Gatlinburg Condo!
Fine living plus a highly desirable ground level corner location for privacy! Professionally decorated with flowing floor plan.
Type: Condo
Location: Gatlinburg ,Tennessee
Price: $199,900
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Condo in Downtown Gatlinburg
Great condo in Downtown Gatlinburg. Within walking distance to the Aquarium, restaurants, and shopping.
Type: Condo
Location: Gatlinburg ,Tennessee
Price: $199,900
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