The National Association of Realtors reports that sales of existing home in the western US produced an overall increase in sales and reduced inventory.
Through the month of December, sales of existing single-family homes, townhomes, condos and co-ops increased by 6.5 percent, yielding a seasonally adjusted annual rate of 4.74 million units.
The chief economist for the NAR, Lawrence Yun, indicated that the price of continues to favor buyers. According to Yun, “It appears some buyers are taking advantage of much lower home prices.” He believes the increase in sales and the decline in inventory are positive indicators and suggests that it will be a buyer’s market for the next many months.
The total inventory of housing fell from an 11.2 month supply in November to a 9.3 month supply in December, with 3.68 million existing homes on the market. Mr. Yun believes that, given the proper nudge, such as a non-repayable home buyer tax credit, the demand for housing could skyrocket. He is hopeful that the new administration will take prompt action to stimulate real estate sales, an action that will help to restore stability to the market and encourage economic recovery.
Regional Sales of Existing Homes
Sales of homes in the West rose to an annual rate of 1.25 million in December, an increase of 13.6 percent over the prior month and 31.6 percent higher than a year ago. The median price of an existing home dropped to $213,100, a decline of 31.5 percent from December 2007.
The Time is Right for Buying a Home