Today the National Association of Realtors (NAR) reported that existing homes sales edged down in March, continuing a decline and remaining within a narrow range of sales activity that has persisted since last September. The NAR reported that existing homes sales were down 2 percent to a seasonally adjusted annual rate of 4.93 million units in March. This is down 19 percent from the 6.11 million unit pace in March of 2007. In comparison the Spokane Market reported sales of 869 units through March, which on an annual basis was approximately 35% below the pace through March 2007.
Regionally, sales rose in the Northeast and West but fell in the Midwest and South. The NAR reports that while interest rates remain at historically low levels, buyers are incurring more restrictive lender requirements, this along with the plethora of inventory has resulted in buyers taking their time to "shop" around. Further adding to the slowdown in sales is that other buyers remain on the outside looking in, in the hopes that prices and interest rates will continue to decline.
The national median existing-home price was $200,700 in March, down 7.7 percent from a year ago when the median was $217,400. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively higher sales activity in low-cost markets. Here in Spokane the median home price in March was $177,875, down only $625 dollars from the median price a year ago of $178,500.
Total housing inventory of 4.06 million existing homes rose 1.0 percent for the month. Based on the current sales pace this represents a 9.9-month supply of inventory, up from a 9.6-month supply in February. Spokane reported 3,044 homes for sale at the end of March, based on our current sales pace this resulted in a 7.20 month supply of inventory. While still higher then most would like to see, this is down from the above 9.83 months of inventory we saw earlier in the year.
On a regional basis existing-home sales in the West rose 2.2 percent in March to a level of 940,000 but are 22.3 percent below a year ago. The median price in the West was $285,100, which is 14.7 percent lower than March 2007.
Similar to the western region, Spokane is behind last years pace in units sold and above last years levels in regards to inventory, however to date we continue to see prices, both average and median holding and not experiencing the significant declines that are occurring on a more national level.
If you have additional questions or if I can be of assistance in your real estate endeavors I would welcome the opportunity. Please give me a call at (509) 979-2535 and allow me to earn your trust, respect and business!
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