My sources at the National Association of Realtors in Washington, DC, are reporting that exisitng home sales rebounded strongly in September, with first-time buyers leading much of the sales. The “NAR” is the largest trade association in America, representing 1.2 million members who work in various parts of the residential and commercial real estate industry. Our association closely monitors activity in various segments of the real estate industry. September’s existing-home sales marked another gain for the year, making 5 gains in the past 6 months. Existing home sales include; single family homes, townhomes, condominiums and co-ops. Data reveals sales jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September 2009 vs 5.09 million in August 2009. This is 9.2% higher than September 2008 figures of 5.10 million units. Sales activity is at the highest level in over 2 years. July 2007 set the record with 5.73 million units.
NAR chief economist, Lawrence Yun ,was cautiously optimistic in his monthly assessment. Yun felt that much of the current momentum is due to people utilizing the first-time buyer tax credit. He was hopeful that the tax credit would be extended or expanded into next year. This would allow rising sales momentum to build into a point of self-sustaining recovery. Yun feels despite the improvement, that the market in real estate has been lagging. There is a lot of wealth tied to home values especially for the middle class. Home prices are appearing to stabilize, but there needs to be a steady supply of genuine buyers to reduce the large inventory of unsold homes. This action would calm consumer fears and boost the overall economy. Without a middle class participation, recession recovery could be lengthy and weak.
NAR President, Charles McMillan was optimistic that conditions for home affordability are favorable. Home affordability this year is as good as records dating back to 1970. However, he feels that the expiration of the tax credit for new home buyers may hold potential buyers out of the market. Current homes are selling below current construction replacement costs. Total inventory of unsold homes is dropping, but not as fast as industry leaders might desire.
All of this data shows that home price stabilization could be in it’s early stages of recovery. Home affordability is reasonable. Mortgage interest rates are historically close to their lows. There is a lot of inventory still out there for buyers to consider. Well-priced, properly staged homes are still selling. So, if you are considering the real estate market as a buyer or seller, now is a good opportunity. Contact The Jason White Team to get started and find out how our professional team of experts can help you achieve your real estate goals. Click here to view our local listings.
Here are a Couple of My Latest Listings
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Heritage Log Home w/ Views of Mt LeConte This beautifully built Heritage Log Home in prestigious Chalet Village has great views of Mt. LeConte. Private yet close to downtown shopping and dining. Three master suites for privacy and on a open lot with level parking. Type: Single Family Home Location: Gatlinburg ,Tennessee Price: $379,900 Get more information > |
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Value for the Money w/ Incredible Views! This artisan quality home has possibly the best mountain views around. Located in Prestigious Chalet Village, this home would cost over a million $ to reproduce in today’s market. Such a value for your money. It even has an elevator!! Type: Single Family Home Location: Gatlinburg ,Tennessee Price: $799,900 Get more information > |