Survey shows prices, sales activity improving in existing-home market

The National Association of Realtors reported strong gains in existing-home sales as well as rising prices in many metro areas during the fourth quarter of 2009.

The NAR’s latest surveys showed that sales increased from the third quarter of 2009 to the fourth in 48 states and the District of Columbia, with 32 states experiencing double-digit gains. And all but three states saw double-digit annual increases.

Total national existing-home sales, including single-family and condos, jumped 13.9 percent to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier, according to the NAR.

Colorado saw an increase in sales of existing homes including single-family, condos and co-ops of 15.1 percent from the third quarter to the fourth, and a 10.3 percent increase from the fourth quarter of 2008 to the fourth quarter of last year.

Lawrence Yun, NAR chief economist, says the first-time home buyer tax credit was the dominant factor in the upswing.

“The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he says. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”

In the fourth quarter, 67 out of 151 metropolitan statistical areas reported higher median existing single-family home prices in comparison with the fourth quarter of 2008, including 16 with double-digit increases; one was unchanged and 84 metros had price declines. In the third quarter only 30 MSAs showed annual price increases and 123 areas were down.

In Colorado, Boulder saw a 3.2 percent year-over-year increase, while Colorado Springs prices increased 1.5 percent and Denver-Aurora’s 11.2 percent.

The national median existing single-family price was $172,900, which is 4.1 percent below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun says.

“Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” he says.

Fall Real Estate Conference Speakers

November 19, 2009 is the date for Re/Max of Boulder's Fall Real Estate Conference. Here's just a teaser on the speakers - more will follow. But Save the date!

FEATURING:

Paul C. Bishop, Ph.D.

Managing Director, Real Estate Research
NATIONAL ASSOCIATION OF REALTORS

Paul Bishop is the Managing Director of Real Estate Research at the NATIONAL ASSOCIATION OF REALTORS^®. Dr. Bishop leads the Research Division’s survey and market research activities including analysis of real estate business and policy issues.

Prior to joining NAR in 2001, Dr. Bishop was a Senior Financial Economist in the Division of Insurance at the FDIC. Between 1991 and 1996, Dr. Bishop was a Senior Economist at the WEFA Group in the Regional Consulting and Forecasting Group where he managed the state and metropolitan area forecasting service and worked with clients on numerous consulting projects.Dr. Bishop earned his Ph.D. in economics from the University of Illinois at Urbana-Champaign and resides in Alexandria, Virginia.

Brad Blackwell

Executive Vice President, Retail National Sales Manager

Wells Fargo Home Mortgage

Brad attended the University of Colorado and started his career in Boulder as a loan officer in 1983. Drawing on his 28 years of mortgage lending and banking business experience, Blackwell focuses on capturing opportunities to strengthen Wells Fargo Home Mortgage’s retail market share and market profitability within all 50 states.

Blackwell was named executive vice president, retail national sales manager in June 2004 after serving three years as a senior vice president, national sales manager for Wells Fargo Home Mortgage’s Pacific Markets. He led efforts to double Wells Fargo’s retail share on the West Coast.

Blackwell is responsible for leading WFHM’s Distributed Retail sales team of more than 10,000 home mortgage consultants who originate residential mortgage loans in more than 800 stores throughout the country. The Distributed Retail sales team strives to increase market share using WFHM’s innovative lines of prime, subprime,renovation,reverse, builder and private mortgage banking products and programs.