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Nearly all U.S. states showed rising existing home sales in the third quarter of 2009, with total state existing home sales increasing 11.4 percent to a seasonally adjusted rate of 5.3 million units, up from 4.76 million units in the second quarter, according to latest data from the National Association of REALTORS® (NAR). Sales were 5.9 percent higher than the 5.01 million-unit pace in the third quarter of 2008. |
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Overall, sales increased in 45 states and the District of Columbia during the third quarter, and 23 of those states and the District of Columbia enjoyed double-digit growth. Tax credits were a big reason for the increased sales pace. |
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"We can't underestimate just how powerful a catalyst the first-time home buyer tax credit has been for the housing sector," said NAR chief economist Lawrence Yun. "It's given buyers the confidence they needed to get off the fence and take advantage of extremely affordable housing conditions." |
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While the sales pace was strong, prices were still well below last year. The national median price for an existing single-family home was $177,900 during the third quarter, which was 11.2 percent below the third quarter of 2008. This could be partly chalked up to distressed sales, which accounted for 30 percent of transactions in the third quarter, pushing prices downward. |
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Bearing that in mind, RealtyTrac reported that the pace of foreclosures had slowed for the third straight month in October. Foreclosure filings were made for 332,292 U.S. properties during the month, a decrease of 3 percent from the previous month but still up almost 19 percent from October 2008. |
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Unlike the well-distributed increase in existing home sales activity, foreclosures were dominated by four key states. California, Florida, Illinois and Michigan accounted for 52 percent of the total foreclosure activity in October, RealtyTrac reported. |
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