Our residential resale housing market remains strong as we move into the typically slower holiday season. Although there has been a slight seasonal decline with decreases in month-over-month sales, the numbers continue to show a strong year-over-year increase in sales volume. Median sales prices only slightly dropped continuing the flat pricing trend that we have seen over the past six months. We anticipate steady sales moving through the holidays and into the first quarter 2010, with buyers responding to the extension and expansion of the home-buyer tax credit and exceptionally affordable interest rates.
SALES:
November ended the month with 451 sold transactions, down 18% from the prior month. Sales were up 70% over the same period last year (2008). Historically, this was a record high number of closed transactions for the month of November.
Sales Mix:
- Bank Owned unit sales were down in November to 153 as compared to 181 in October. Bank Owned sales represent 34% of the sales, up from 33% in October.
- Short Sales were at 130 in November, down from 134 reported in October. Short Sales represent 29% of the mix in November as compared to 24% in October.
- No Special Condition (None) sales decreased in November to 141 compared to 198 in October. Sales reported as "No Special Condition" represented 31% of the sales, down from 36% reported in October.
MEDIAN PRICE:
- November 2009 median price was down 3% to $175,000 compared to $180,000 in October 2009.
- Median price is defined as the mid-point, half of the sales for the time frame (November) are below and half are above.
PENDING:
- There were 472 new Active Pending sales reported for the month of November, down 28% from the prior month.
- 78% of November pendings are distressed (short sale and bank owned)
LISTINGS:
- 507 new listings were taken in November compared to 614 in October, a 17% decrease
- The percentage of "Distressed" new listings was up 6%. 65% of new November listings were distressed, 206 Short Sales, 126 Bank Owned.
MONTHS SUPPLY OF INVENTORY (Unsold Inventory divided by Sales per Month)
- As of November 30th, there was 6.5 months of inventory based on the 30-day November sales rate. For the sixth consecutive month the Months Supply of Inventory (MSI) has been balanced.
- The National Association of Realtors describes a balanced market as between 5 and 7 months supply.
- Unsold Inventory includes all Actives and Active pendings
CONCLUSIONS:
- November 2009 had the highest number of recorded closings for a November. This is partially attributed to the expiration of the deadline on the First-Time Home buyers Tax Credit.
- The median price remains relatively flat.
- Short Sale closings continue to increase as a percentage of the total market mix.
- The volume of Short Sales closings year-over-year has increased by 154% (November 2008= 53 Short Sales, November 2009=130 Short Sales
- The median home price is in line with the median household income in recent months for the first time since 2002.
IMPORTANT INFORMATION:
- As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
- Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
- HUD issued Mortgagee Letter #09-52 which states Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to: a) take advantage of declining market conditions and b) to purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
Monthly Market Talk, November 2009 is a report by Reno/Sparks Association of Realtors.
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