Oct 27, 2008 Sales up----listings numbers down----prices stabilizing-----have we hit bottom?
In our most recent history, property prices have been falling. Slower buyer demand, excess inventory, short sales, foreclosures and general financial upheaval have hurt the real estate market locally.
That trend seems to be reversing, not only locally but nationally, too.
Sales of existing homes on the West Coast rose to its highest level in 13 months according to a report issued today by the National Association of Realtors (NAR). It seems the increase is a result of buyers recognizing improved housing affordability. Total housing inventory nationally at the end of September, fell 1.6% to 4.27 million existing homes available for sale, which represents a 9.9-month supply² at the current sales pace, down from a 10.6-month supply in August. This marks two consecutive monthly declines since inventories peaked in July, 2008. The other strong trend is that 80% of current buyers are purchasing a primary residence rather than investors or speculators, which is also higher than historic averages. These trends are being reflected in our local statistics, also.
Existing-home sales nationally-including single-family, townhomes, condominiums and co-ops-rose 5.5% to a seasonally adjusted annual rate of 5.18 million units in September from a level of 4.91 million in August, and are 1.4% higher than the 5.11 million-unit pace in September 2007. This is the first time since November 2005 that home sales have been above year-ago levels.
And. Interest Rates Are Still Very Good!
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.04% in September from 6.48% in August; the rate was 6.38% in September 2007. Our rate today is hovering at about
Prices are still coming down slightly but with the pressure from (1) more buyer demand and (2) less inventory coupled with (3) continued low home loan rates, prices have most likely hit bottom.
If you know anyone who has been waiting for the bottom of the market, have them call me. Now is the best time to BUY!