USA Today reports home sales increase
This weeks news brought us a report in USA Today that home sales posted their largest increase in a year in February as prices finally fell enough to lure reluctant buyers back into the market. I guess maybe we were right after all that the market is shifting.
Realtors active in the market can sense the change. We are getting much more activity at our open houses, more hits on our website and therefore more phone calls. The media is slow to pick up on this because of the delay in data coming out from the reporting agencies, but they are now picking up the drum beat.
Sales of existing homes rose 2.9% from January, the National Association of Realtors said Monday. The increase, which was largely unexpected by economists, is a welcome sign of some stabilization in a housing slump that has taken a toll on the nation’s economy.
The median home price fell to $195,900, down 8.2% from $213,500 in February 2007. The median means half of the homes sold for more, half for less.
In our Downing-Frye office, we are finding that half of all the contracts are below $250,000 and the other half is over $1,000,000. Very little activity so far between those two price points.
Existing home sales are expected to remain on the slow side through 2008, but there are a host of initiatives underway to bolster the sagging market and aid homeowners facing foreclosure, prompting economists to predict higher sales later in 2008. The most recent increase in sales doesn’t capture some of those initiatives, such as letting Fannie Mae and Freddie Mac buy larger mortgages, making them easier to get.
The current situation is a perfect storm for buyers. Much lower prices, large inventories and historically low interest rates. The smart investors are picking up some incredible deals. Who do we see taking advantage of these conditions? We are actively working with several buyers from England and Canada.
When the media tells you the bottom has hit…you’ll have missed it!
For more information on are Naples real estate market, call Ruth Bethem, ABR, CRS, GRI Realtor® toll-free at 877-777-7545 or email her directly at ruth@ruthbethem.com.