Great news came in last week on the housing market! Sales of existing homes in the U.S. rose in November to the highest level since February 2007, a sign that the housing market is gaining strength heading into 2010. The National Association of Realtors reported that home purchases increased 7.4 percent over October, adding that the median sales price declined 4.3 percent from the same month a year earlier, the smallest decrease since November 2007.
Purchases of existing homes rose 44 percent in November compared with a year earlier, the biggest increase on record. The median home price fell to $172,600. Here in Charlotte, overall home sales (new and existing) decreased 9.5% in the month of November compared to October, but showed an increase of 31.5% of that for November, 2008. The average selling price for the month fell 4.9% from prior month, but increased 1.1% from a year ago.
The reported figures are a result of lower interest rates, cheaper homes, and a homebuyer tax credit. However, a sustained recovery in housing, as well as the economy depends on a reduction in the unemployment rate and a resumption of payroll growth.
Previously owned home sales are compiled from contract closings and may reflect purchases agreed upon weeks or months earlier. Many economists consider new home sales, recorded when a contract is signed, a more timely barometer of the strength of the housing market.
Areas of the country showing the most increase were the West with 10.6 percent; the Midwest with 8.4 percent; the Northeast with 6.6 percent; and the South with 4.8 percent.
Given Charlotte's track record for a brisk housing market, one can only expect that things are looking up for us, as well. Hopefully, the newly extended and expanded homebuyer tax credit will stimulate home sales in the months where we typically see the lowest volume of activity - December, January, and February. And, that such an upturn in activity will continue on into 2010.
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