Are we bottoming out?????

By
Real Estate Sales Representative with Westwood Metes & Bounds

As per Ken Sweet of Fox News on Monday March 23, 2009:

 

The number of existing homes sold in February unexpectedly rose last month, an industry trade organization said Monday, as distressed home sales continued to remain the dominant force in the nation's impaired housing market.

According to the National Association of Realtors, the number of homes sold rose 5.1% to a seasonally-adjusted rate of 4.72 million units in February up from 4.49 million annualized units.

The jump in sales was much better than what economists had predicted, who were expecting existing home sales to fall to 4.45 million units. The data helped boost stocks broadly, pushing the Dow Jones Industrial Average up nearly 300 points.

While the increased sale of homes is a welcome sign to Wall Street -- as many believe that the housing will eventually lead the nation's economy out of this recession -- the bulk of February's sales were distressed purchases. The average price for a home sold was $165,400, down 15.5% from a year ago.

"Because entry level buyers are shopping for bargains, distressed sales accounted for 40% to 45% of the transactions in February," said NAR's chief economist Lawrence Yun in a statement.

As it has been for the past couple months, existing home sales were stronger in the West than the rest of the nation -- primarily in the struggling housing market of California. Existing home sales in the region were up 2.6% from a month ago to 1.2 million annualized units, and are up 30.4% from a year ago.

In the Northeast, sales rose 15.6% to an annualized rate of 740,000 units and are down 14.9% from a year ago. In the Midwest, sales were basically flat -- up 1% -- to 1.04 million units.

In the struggling Southern market, existing home sales rose 6.1% to an annualized rate of 1.74 million units, according to the trade organization.

 

I read posts of Realtors in  California and several feel that their market is bottoming out.  We are usually about three months behind California as per my oberservations so can that mean that we are bottoming out and on our way to leveling off?

What do you think?  This weekend our office's phone was busy and we had walk ins.  A great sign.

 

Comments (10)

Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee - 423-677-6677

Thanks for this post.  Great information we can use in our everyday business world.  I do think we are in a turn around.  Business is GREAT!!!

Mar 24, 2009 12:32 AM
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

At the end of the day people want to buy homes. If the economy stabilizes and people are not afraid of losing their jobs then housing will go up

Mar 24, 2009 12:32 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Some locations may be bottoming out, some may have longer to go.  One thing is certain, as it always is, we wont know that we've bottomed out until 2 or 3 months after the fact.

Mar 24, 2009 12:38 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

People need shelter. Period. There is always a market, you should always be hustling, busy, productive. There is no market where you are not moving inventory if it is priced right, marketed agressively and you believe or make that market when other brokers are standing around the water cooler wondering where we are in the current market. Let the media make the predictions, right or wrong and turn the volume down as you keep listing, getting price reductions, taking better images, writing sharper copy, and producing interesting helpful property AND area videos for your audience.  You may be the exception to the rule in your market if you do.

Mar 24, 2009 01:02 AM
sandy reid
Westwood Metes & Bounds - New Paltz, NY
period homes, second home market

Excellent responses.  Thank you very much for sharing.

Best, Sandy

Mar 24, 2009 02:09 AM
Connie Case
Platinum Realty Group - Fountain City, TN
Realtor, Knoxville Tn.

Sandy, Thanks for the information. I need some good news.

As with the others, I agree that the price will move the property, it is getting to the price that it will move that is painful for the seller.

The phone is ringing more!

Mar 24, 2009 02:35 AM
sandy reid
Westwood Metes & Bounds - New Paltz, NY
period homes, second home market

Amen.  The phone is ringing more and the walk ins are walking in.  I am ready as Andrew Mooers says with cutting edge photography, a great website and everything else I will need to effect a sale and make a client/customer happy.  Yeeehhaaaaa!

 

Have a great day Active Rain members!

Mar 24, 2009 03:07 AM
Robert Vegas Bob Swetz
Las Vegas, NV

Sandy- I really don't want to burst any bubbles here but Spring always increases in sales. Late Summer into fall prices will be dropping again!

Mar 24, 2009 11:16 AM
Nate Rowe
Oakstone Properties, Homes in Richmond VA - Richmond, VA
Realtor, Homes in Richmond VA

I hope so.  I do feel that the overall economy will continue to decline some.  There are a ton of people that are just getting to the doorstep of foreclosure because of the amazing number of lost jobs.  I will do everyhting I can to help turn it around and I hope it does ASAP.  I wish you the best.

Mar 25, 2009 09:47 AM
sandy reid
Westwood Metes & Bounds - New Paltz, NY
period homes, second home market

I wish us all the best Nate.  I will do all I can to contribute to the positive not the negative.

Best,

Sandy

Mar 25, 2009 12:03 PM