The National Association of Realtors today reported the biggest gain in home re-sales in TWO years, rising 9.4% in September, 2009 to 4.89 million single family units, from 4.47 million units in August. This also represents a 7.7% increase in home sales from September, 2008, a year ago. NAR attributes this big jump in home sales to the $8,000 first-time home buyer tax credit, which is currently set to expire on December 1, 2009, a national-average mortgage rate of 5% in September (down from 6% in August), and a drop in the national median home price to $174,900 this month (down 8.5% from just a month ago).
NAR President Charles McMillan acknowledges that home affordability is the best it's been since the 1970's because of low interest rates, depressed home prices, and the tax credit. First-time home buyers have accounted for 45% of home sales this year, while nationwide, distressed properties (foreclosures, REOs and short sales)have accounted for 29% of all sales.
So is this a reason to celebrate? Has the housing market hit rock bottom, and will the recovery begin SOON? That's the $64 million dollar question! The glut of distressed properties for sale has definitely had a downward push on national median home prices, and we're not out of the woods yet on more distressed properties crowding the market and impacting home values. NAR economist Lawrence Yun has said that we need a steadier pool of qualified buyers to help bring existing housing inventories down. The tightening credit markets have restricted the number of buyers who can qualify for mortgages. Yun asserts that more qualified buyers would help the real estate market return to steadier growth, boost consumer confidence, and help the nation move toward economic recovery.
What about the Charlotte real estate market? Although the Charlotte market was not hit as hard as many other areas impacted by the housing bubble (Florida, Nevada, California, Arizona, Michigan), the Queen City and its surrounding regions have definitely suffered during the impact. Here are some pertinent statistics for the Charlotte real estate market since June of 2009:
September: 1,945 sales, averaging $196,760 (6% decrease from August)
August: 2,221 sales, averaging $209,245 (2% decrease from July)
July: 2,223 sales, averaging $212,977 (3% decrease from June)
June: 2,024 sales, averaging $218,728 (9@ increase from May)
Source: Charlotte Regional Realtor Association
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