U.S. home prices show signs of life

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

By Claes Bell • Bankrate.com [Excerpted]

U.S. housing values showed signs of life during the third quarter, according to the latest National Association of Realtors home price survey.

While housing values were down significantly year-over-year in the vast majority of markets, many markets hard hit by the extended real estate slump rose when compared to the second quarter.

Nationally, the average single-family home price fell from $200,400 to $177,000 year over year, a seasonally adjusted loss of 11.2 percent, according to the NAR. However, average home prices actually rose 2.2 percent during the third quarter — from $174,100 to $177,900 — when compared to the second quarter.

Several markets severely affected by the housing downturn saw price improvement. Median home prices in Miami-Fort Lauderdale, Fla., a market that epitomized the collapse in housing prices during the worst of the downturn, rose for the second consecutive quarter, from $207,400 to $217,000. Hard-hit Phoenix-Mesa-Scottsdale, Ariz., also registered a second straight quarterly gain, rising 8.8 percent from $131,100 to $142,700.

The Riverside-San Bernadino-Ontario, Calif. area, which has seen its median home price drop by more than half since its 2006 peak, recorded a quarterly gain of 4.1 percent, rising from $161,500 to $168,100. And prices in Cape Coral-Fort Myers, Fla., — which saw its median value plunge from $268,200 in 2006 to as low as $84,000 in the second quarter of this year — finally reversed direction, jumping 16.7 percent in the third quarter to $98,000.

Several markets showed healthy year-over-year gains as well. Median prices in Cumberland, Md.-W.Va., soared 19.2 percent year over year, to $122,100. Davenport-Moline-Rock Island, Iowa-Ill., also recorded double digit yearly gains, jumping 14.3 percent to $115,600. Meanwhile, Oklahoma City home values rose 9.1 percent to $144,100.

Sales rise

Sales of existing homes, spurred on in part by the recently extended homebuyer tax credit, continued to accelerate, according to the survey.

“We can’t underestimate just how powerful a catalyst the first-time homebuyer tax credit has been for the housing sector,” said Lawrence Yun, NAR chief economist, in a statement. “It’s given buyers the confidence they needed to get off the fence and take advantage of extremely affordable housing conditions.”

Compared to the second quarter, 45 states and the District of Columbia saw sales increases. Of those markets, D.C. and 28 states recorded double-digit gains. Overall, sales rose 11.4 percent nationally in the third quarter.

Year-over-year sales were higher in 32 states and D.C., and rose a seasonally adjusted 5.9 percent nationally.

Price index rises for 2nd straight quarter

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

Year-over-year decline is narrowing

By Inman News, Tuesday, November 24, 2009

A U.S. home-price index posted its second consecutive quarterly increase, rising 3.1 percent in the third quarter, according to a report released today.

The U.S. National Home Price Index, which covers all nine U.S. Census divisions and is a part of the Standard & Poor’s/Case-Shiller Home Price Indices was down 8.9 percent, though, on a year-over-year basis.

This year-over-year decline in the third quarter is markedly lower than the 14.7 percent decline reported in the second quarter and smaller still than the 19 percent year-over-year drop in the first quarter, according to the report.

A separate, monthly index, the 20-City Composite Home Price Index, posted an annual decline of 9.4 percent. And the monthly index has experienced gains in its annual rates of return during every month since the beginning of the year.

September saw a 0.3 percent increase from August’s levels, for example.

As of third-quarter 2009, U.S. home prices have returned to their August 2003 levels, according to the index.

“We have seen broad improvement in home prices for most of the past six months,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s.

“However, the gains in the most recent month are more modest than during the seasonally strong summer months. Fewer cities saw month-to-month improvements in September than in August in both seasonally adjusted and unadjusted figures.”

Also this week, the National Association of Realtors reported that sales of existing U.S. homes rose substantially and inventories shrank in October. Home sales surged 10.1 percent compared to September and 23.5 percent compared to October 2008.

The first-time homebuyer tax credit drove the unexpectedly rosy figures, says the National Association of Realtors. Originally set to expire this month, the U.S. government recently extended the $8,000 tax credit until April 30, 2010, easing concerns about a drop-off in homebuyer activity.

“There is still a large pent-up demand that can be tapped before the tax credit expires,” said Lawrence Yun, the association’s chief economist, in a statement. “Our recent consumer survey further shows that 13 percent of successful first-time buyers had a previous contract that was canceled or fell through — there likely are many more buyers who were attempting to purchase but simply ran out of time.”

Housing inventory at the end of October fell 3.7 percent to 3.57 million resale homes available for sale. That represents a seven-month supply at the current sales pace, a rate not seen since February 2007. That’s down from an eight-month supply in September and may signal a renewing balance between buyers and sellers, the association said. A monthly supply of six months is said to indicate a rough balance between a buyer’s market and a seller’s market. Unsold inventory totals are 14.9 percent below a year ago.

Distressed properties accounted for 30 percent of sales in October. The association said such properties downwardly distort the median price because they usually sell at a discount relative to traditional homes in the same area.

Almost half, 48.8 percent, of all U.S. home sales were for homes between $100,000 and $250,000. Yun said prices are beginning to flatten, however, and are poised to rise next year.

Sales increases differed widely by region, with the largest gains in the Midwest and the slightest gains in the West. The median resale single-family home price was $173,100 in October, down 6.8 percent from a year ago. Sales of resale homes rose 28.8 percent in the Midwest, 25.7 percent in the South, 27.7 percent in the Northeast, and 12 percent in the West in October compared to the same month last year.

The seasonally adjusted annual rate of resale home sales — which is a measure of a monthly sales rate projected over a 12-month period and adjusted to account for typical seasonal fluctuations in sales activity — jumped 27.7 percent in the Midwest, 24.2 percent in the Northeast, 23.1 in the South, and 11.2 percent in the West year-over-year in October.

The estimated supply of resale homes for sale in October, based on the sales rate for that month, rose 10.1 percent vs. September and 23.5 percent compared to the October 2008 rate, according to the report.

Existing-Home Sales Jump 10.1%

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

By JEFF BATER

November 24, 2009

Home resales leaped in October, rising far more than expected as a fat tax credit offset fears about joblessness.

Sales of existing homes increased by 10.1% to a 6.10 million annual rate from 5.54 million in September, the National Association of Realtors said Monday.

Inventories kept shrinking. Prices fell, but the NAR said the decline was the smallest in more than a year.

The 6.10-million rate was the highest since February 2007. Economists surveyed by Dow Jones Newswires expected a 2.3% increase in sales during October, to a rate of 5.70 million.

“Many buyers have been rushing to beat the deadline for the first-time buyer tax credit,” NAR economist Lawrence Yun said.

Aside from the tax credit, low prices and mortgage rates have drawn in buyers, concerned as the U.S. unemployment rate climbed in October to 10.2%. The NAR reported the median price for an existing home last month was $173,100, down 7.1% from $186,400 in October 2008. The average 30-year mortgage rate was 4.95% in October, down from 5.06% in September, Freddie Mac data showed.

September sales rose 8.8% to 5.54 million; the NAR originally reported sales for that month jumped 9.4%, to 5.57 million. Existing-home sales, year over year, were 23.5% higher last month than the level in October 2008.

The October surge in sales follows a very disappointing housing sector report last week showing U.S. construction tumbled in October to the lowest point in six months. A reason for the sharp, unexpected drop might have involved uncertainty over a government tax incentive for home buyers that had been due to lapse in November.

Inventories of previously owned homes decreased by 3.7% at the end of October to 3.57 million available for sale. That represented a 7.0-month supply at the current sales pace, compared to 8.0 in September.

Regionally, sales in October compared to September rose 11.6% in the Northeast, 14.4% in the Midwest, 12.7% in the South, and 1.6% in the West.

Of the 6.10 million in overall U.S. sales, 30% were distressed, which includes foreclosures. That compares to a range of 45% to 50% in months during late 2008 and early 2009.

Printed in The Wall Street Journal, page A8

Housing at Its Most Affordable in Years

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

Daily Real Estate News  |  November 20, 2009  |   

One piece of good news coming out of the Great Recession is the increasing affordability of housing.

The typical U.S. family earning the nation’s median income of $64,000 a year could afford to buy 70.1 percent of all homes sold in the United States during the third quarter, according to a report from the National Association of Home Builders and Wells Fargo. The report relied on the government standard of spending no more than 28 percent on housing. In the same quarter of 2008, only 56.1 percent qualified.

5 reasons to buy a home during holidays

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

5 reasons to buy a home during holidays

By Tracey C. Velt • Bankrate.com

Add ‘new home’ to your shopping list

While you may think it’s crazy to tackle the huge task of homebuying during the schedule-jammed holiday season, the holidays are actually a great time to find real estate deals in today’s new economy.

“This year in particular may be different than other years,” says Beth Tyler, a broker with Long & Foster Real Estate in Annapolis, Md., who says the economy has boosted many sellers’ motivation to sell.

“Interest rates are at an all-time low, prices are greatly depressed and inventory is plentiful,” says Nick Burrafato, broker/owner of Florida HomeGallery Real Estate in Orlando, Fla.

“The holiday season is a particularly good time for first-time homebuyers to find a home,” says Rich Hayden, senior loan officer for HomeFirst Mortgage Corp. in Alexandria, Va. “But get prequalified with a mortgage broker or lender early. The typical turnaround to close a home is 30 (to) 60 days, so it’s best to get started right away.”

“The housing market appears to have reached a floor through the June to September period,” says Steve Murray, editor of REAL Trends, a real estate industry publication.

“December home sales usually make up about 8.1 percent of total annual home sales,” he says. The peak months are May, June, July and August — each nearly 11 percent of annual home sales. The only months lower than December are November, January and February.

Here are five reasons the 2009 holiday season promises to be filled with better-than-usual home bargains:

1. Low interest rates

Interest rates and home prices are at all-time lows. “If we look historically at interest rates, cyclically we’ve seen drops every December through January,” says Hayden. “While rates are now at all-time lows, we could dip even lower,” he says.

Tyler agrees, “Interest rates have to come up sometime but it won’t be during the holidays.”

2. Serious sellers

With unemployment rates still high and looming holiday expenses, many home sellers are extremely motivated to sell immediately and are more willing to negotiate a lower home price. “Properties that are on the market over the holiday season usually have very serious sellers,” says Sherry Chris, president and CEO of Better Homes and Gardens Real Estate in Parsippany, N.J.

Lori Bowers, a broker with The Lori Bowers Group Desert Properties in La Quinta, Calif., agrees.

“Many owners are anxious to get the home sold before the end of the year because it helps on their taxes,” she says. Moreover, a serious seller means more negotiating power for the buyer, especially if the home has been on the market for several months.

3. Slower market

With many people busy gift shopping, traveling and entertaining, November and December are traditionally slow for real estate. On-the-ball buyers can take advantage of that fact and find less competition for the most desirable homes. According to Elio Buoni, a Chicago-based broker with RealEstate.com, fewer buyers and plenty of listings on the market mean bidding wars with other buyers (which can drive up the cost of the home) are less likely to occur.

4. Faster closings

Fewer transactions mean faster closings. “November and December are historically slower months in the mortgage business, so things get done faster,” says Brad Walbrun, a mortgage consultant for A and N Mortgage Services in Chicago.

Not only that, “Financial institutions and lenders that are looking to close the books on 2009 may be more willing to act quickly to get a transaction closed by year end,” says Chris. That means it may take less time to get an offer accepted on a foreclosure or short sale property, a real boon for buyers who want to close quickly.

5. Tax deductions

“Most settlement costs paid to the mortgage company, lender or broker are tax-deductible in the year in which you pay them,” says Walbrun. If you close on or before Dec. 31, you may be able to deduct the interest on your first monthly mortgage payment from your taxable income. And, you may be able to deduct points paid to reduce your interest rate as well, says Buoni.

Tracey C. Velt is a Florida-based journalist and blog writer specializing in business and real estate.

For more help…  please feel free to download the following documents from my Realtor website:

10 steps to ’short-sale’ buying

7 steps to great foreclosure buy

which are located at the following web url:

http://www.kenbryant.remax.com/pages/research.aspx

The mortgage calculator “How much house can you afford?” can be found at the following web url:

http://www.kenbryant.remax.com/pages/links.aspx

Most States See Rising Resales in Third Quarter

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

by NAR Research Staff

Low interest rates, the first-time buyer tax credit and the beginnings of an economic recovery all led to rising home sales in most states in the third quarter of 2009. In addition, home prices moderated in many metro areas during the same period.

According to the latest quarterly report from the National Association of REALTORS®, total state existing-home sales, including single-family and condos, increased 11.4 percent to a seasonally adjusted annual rate of 5.30 million units. Third quarter resales were up 5.9 percent above the 5.01 million-unit pace in the third quarter of 2008. Forty-five states and the District of Columbia experienced increased sales from the previous quarter, with 28 states and the District seeing double-digit gains. Year over year, sales were higher in 32 states and Washington, D.C.

One significant factor behind the improving sales was the first-time buyer tax credit. While it is difficult to quantify the actual impact of the tax credit, it is safe to say that it gave many first-time purchasers the confidence to get “off the fence” and take advantage of extremely affordable housing conditions. In fact, the buying conditions this year are the most favorable on record – ever since NAR began tracking affordability in 1970.

Home Sales

The biggest sales gain between the second and third quarters was in North Dakota, which experienced an increase of 42.3 percent. Rhode Island was next, posting a 26.5 percent rise in resales. Pennsylvania followed with an increase of 25.6 percent in existing-home sales.

Regionally, existing-home sales in the Northeast surged 16.7 percent in the third quarter to a seasonally adjusted annualized rate of 930,000 units; Northeast resales were up 6.9 percent compared to the third quarter of 2008. In the Midwest, existing-home sales jumped 13.2 percent in the third quarter to a pace of 1.20 million units, 5.2 percent above a year ago. In the South, existing-home sales rose 11.3 percent in the third quarter to an annual rate of 1.97 million units. That’s 5.9 percent higher than in the third quarter of 2008. Existing-home sales in the West increased 5.6 percent in the third quarter to an annual rate of 1.19 million units, 4.6 percent above a year ago.

Metropolitan Area Home Prices – Single Family Homes

While prices continued to decline, those declines have moderated somewhat. During the third quarter of this year, 123 out of 153 metropolitan statistical areas reported lower median existing single-family home prices in comparison with prices posted in the third quarter of 2008. But 30 metros had price gains. The national median existing single-family price was $177,900, 11.2 percent below the price reported in the third quarter of 2008. Distressed sales – foreclosures and short sales – accounted for 30 percent of transactions in the third quarter. Those distressed sales continued to weigh down median home prices because they sell at a discount relative to prices of traditional homes.

Third-quarter metro area median prices for single-family homes ranged from $61,400 in the Saginaw-Saginaw Township North area of Michigan to $566,000 in the San Jose-Sunnyvale-Santa Clara area of California. The largest year over year price increase for an existing single-family home was in the Cumberland area of Maryland and West Virginia at $122,100, up 19.2 percent from the third quarter of 2008. Next was the Davenport-Moline-Rock Island area of Iowa and Illinois, where the median price increased 14.3 percent to $115,600.

As would be expected, there were differences in home price gains/declines by region. The median existing single-family home price in the Northeast declined 9.4 percent to $244,500 in the third quarter from the same quarter in 2008. The largest price gain in the region was in Buffalo-Niagara Falls, N.Y., where the median price of $119,700 rose 4.8 percent from the third quarter of 2008.

In the Midwest, the median existing single-family home price declined 5.5 percent to $150,200 (on a year over year basis), but some Midwest metros posted gains. After Davenport-Moline-Rock Island (see above), the next strongest metro price increase in the region was in Cedar Rapids IA, where the median price of $145,700 was 7.6 percent higher than a year ago. The median single-family home price in Bismarck ND was $157,200, up 7.5 percent from the third quarter of 2008.

The median existing single-family home price in the South was $160,000 in the third quarter, down 7.9 percent from a year earlier. But that region also boasted some metros with price gains. After Cumberland (MD/WV) Oklahoma City OK registered the next strongest price increase in the region – up 9.1 percent. In Shreveport-Bossier City LA median single-family home prices rose 8.6 percent from a year ago to $152,300. The median existing single-family home price in the West was $224,000 in the third quarter, 16.4 percent below the price registered in the third quarter of 2008. The best metro price performance in the West was in Yakima WA, where the median price of $158,400 rose 2.7 percent from a year earlier. The Denver-Aurora CO area also experienced a price increase – up 1.8 percent to $229,100.

The decline in the national median price has moderated recently, and a shrinking supply of unsold inventory suggests we are getting closer to price stabilization in many areas. But broader stabilization will require a steady stream of financially qualified buyers to further reduce inventory and so return us to a self-sustaining market. Yes, foreclosures will continue to come on the market, but rising sales from the recently enacted expanded tax credit should stabilize home prices by next spring and help to stem future foreclosures.

Condo/Co-op Prices

Metro area condominium and cooperative prices – covering changes in 55 metro areas – showed the national median existing-condo price was $178,000 in the third quarter, down 15.4 percent from the third quarter of 2008. Metro area median existing-condo prices in the third quarter ranged from $67,600 in Las Vegas-Paradise NV to $432,800 in San Francisco-Oakland-Fremont CA. Four metros showed annual increases in the median condo price and 51 areas posted declines. The metros experiencing condo price gains were San Diego-Carlsbad-San Marcos (up 13.3 percent), followed by the Cincinnati-Middletown area (up 2.0 percent), the Toledo, Ohio, area (up 1.7 percent) and the Indianapolis metro (up 0.8 percent).

What the Numbers Tell Us

The wide range of market performance and reversals around the country, ranging from double-digit gains to double- digit losses in both sales and prices, underscores just how local real estate truly is. This is obviously a market in transition. But the recent extension and expansion of the home buyer tax credit program is likely just what the market needs. As more first-time and repeat buyers take advantage of that program, the market should become more balanced and stable.

Beware a mortgage-rate spike this spring

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

Originally Posted by Carla Fried

Money.cnn.com

November 16, 2009 11:31 am

A looming shift in Federal Reserve policy could send the 30-year fixed mortgage to 6% or higher, up from Monday’s rock-bottom rate of 5.02%. For all the hullaballoo about the stimulative impact of last week’s decision to extend the $8,000 First-Time Home Buyer Tax Credit and create a $6,500 credit for current homeowners, a sharp rise in the bellwether mortgage rate could muck up a housing recovery.

For the past year the Federal Reserve’s voracious $1.25-trillion purchase program of mortgage-backed securities has effectively pushed the 30-year conforming fixed-rate mortgage lower than it would normally be. Typically the conforming FRM is about 25 basis points lower than the rate on a jumbo mortgage. According to Bankrate’s latest weekly survey, the difference is more than one percentage point (6.24% vs. 5.19% as of Nov. 10).

But the Federal Reserve has signaled that it intends to wind down its purchase program by the end of the first quarter of 2010. Analyst Meredith Whitney recently dubbed the Fed’s “Great Exit” the biggest risk for banks and the markets over the next four months.  And consumers.

Absent another big buyer (or set of buyers) stepping up and taking the Fed’s place, rates would likely rise. If the jumbo/conforming spread reverts to its historic norm, we’re looking at a 30-year fixed rate mortgage closer to 6% based on today’s levels. That could translate into a decline of 10% or so in home buyers’ purchasing power. A $300,000 mortgage at 5.02%, for example, works out to about $1,614 a month. At 6% you’d need to drop the mortgage amount to less than $270,000 to keep the monthly payment at $1,614. As Amanda Gengler points out in her 2010 Housing Outlook, prospective buyers and refinancers should look to lock in a rate sooner rather than later.

2010 Sales to Rise 15 Percent

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

Daily Real Estate News  |  November 13, 2009 [Excerpts]

Home sales will increase 15 percent to about 5.7 million units and REALTOR® income will be up 20 percent in 2010, NAR Chief Economist Lawrence Yun told a packed room of REALTORS® today in a residential economic update at the 2009 NAR Conference & Expo.

Yun credited the home buyer tax credit with unleashing sales on the lower-end of the housing market this year, bringing up to 400,000 first-time buyers into the market who wouldn’t have bought otherwise. That influx tightened inventories of starter homes, shored up prices, and helped reduce households’ fear over continuing price drops.

This virtuous cycle will continue now that the federal government has extended the credit to mid-2010 and expanded it to make a smaller credit available to repeat buyers and to households with higher incomes. “The key is stabilizing prices and preserving household wealth,” he says.

Yun predicts the supply of homes to stabilize at the historic norm of six to seven months. Homes above $500,000 will remain elevated in the near-term, but that weakness will be offset by a hefty drop in starter-home inventories, which are running at about a five months supply.

The tightening inventory at all price points will help improve market performance by bringing supply into better balance with demand, but the added sales, particularly on the higher end, will also increase the number and quality of the market comparables used by appraisers to assign valuations. Once appraisals improve, foreclosures will ease, blunting their drag on the market and making it less likely that Fannie Mae, Freddie Mac, and even FHA will need help from the taxpayer.

“Then we’ll be set for a durable economic expansion,” he said.

Source: Robert Freedman, REALTOR® magazine

States See Surging Sales, Moderating Prices

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

Daily Real Estate News  |  November 10, 2009  |  

Most states continued to experience rising existing-home sales in the third quarter, with prices moderating in many metro areas, according to the latest survey by the NATIONAL ASSOCIATION OF REALTORS®. 

Total state existing-home sales, including single-family and condo, increased 11.4 percent to a seasonally adjusted annual rate of 5.30 million units in the third quarter from 4.76 million units in the second quarter, and are now 5.9 percent above the 5.01 million-unit pace in the third quarter of 2008.

Sales increased from the second quarter in 45 states and the District of Columbia; 28 states and D.C. saw double-digit gains. Year-over-year sales were higher in 32 states and D.C.

Lawrence Yun, NAR chief economist, said the tax credit is a significant factor. “We can’t underestimate just how powerful a catalyst the first-time home buyer tax credit has been for the housing sector,” he said. “It’s given buyers the confidence they needed to get off the fence and take advantage of extremely affordable housing conditions. The buying conditions this year are the most favorable on record dating back to 1970, but the tax credit is allowing buyers to set aside any reservations about waiting for a better deal.”

During the third quarter, 123 out of 153 metropolitan statistical areas2 reported lower median existing single-family home prices in comparison with the third quarter of 2008, while 30 areas had price gains.

The national median existing single-family price was $177,900, which is 11.2 percent below the third quarter of 2008; the median is where half sold for more and half sold for less. Distressed sales – foreclosures and short sales – accounted for 30 percent of transactions in the third quarter, which continued to weigh down median home prices because they sell at a discount relative to traditional homes.

“The decline in the national median price has moderated recently, and a shrinking supply of unsold inventory suggests we are getting closer to price stabilization in many areas, but we need a steady stream of financially qualified buyers to further reduce inventory and get us to a self-sustaining market,” Yun said. “Foreclosures will continue to come on the market, but rising sales from the expanded tax credit should stabilize home prices by next spring and help to stem future foreclosures.”

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage rose to 5.16 percent in the third quarter from a record low 5.03 percent in the second quarter, but was dramatically lower than the 6.32 percent average rate in the third quarter of 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said he is encouraged by recent actions in Congress. “Extending and expanding the tax credit to more buyers through the middle of next year is the right medicine,” he said. “Congress understands the impact of housing on the economy, so consumers who aren’t able to complete a transaction before the end of this month now have a second chance but must have a contract in place by April 30.”

The biggest sales gain between the second and third quarters was in North Dakota, up 42.3 percent; followed by Rhode Island which rose 26.5 percent; and Pennsylvania, up 25.6 percent.

The largest single-family home price increase in the third quarter was in the Cumberland area of Maryland and West Virginia at $122,100, up 19.2 percent from the third quarter of 2008. Next was the Davenport-Moline-Rock Island area of Iowa and Illinois, where the median price increased 14.3 percent to $115,600, followed by Oklahoma City, at $144,100, up 9.1 percent from a year ago.

“The wide range of market performance and reversals around the country, ranging from double-digit gains to double-digit losses in both sales and prices, underscores just how local real estate truly is,” Yun said. “The wide changes and mix of numbers also indicates a market in transition, hopefully to one that is becoming more balanced and stable.”

Median third-quarter metro area single-family home prices ranged from a very affordable $61,400 in the Saginaw-Saginaw Township North area of Michigan to $566,000 in the San Jose-Sunnyvale-Santa Clara area of California. The second most expensive area in the third quarter was San Francisco-Oakland-Fremont at $538,100; followed by the Anaheim-Santa Ana-Irvine area of California at $498,800.

Other affordable markets include the Youngstown-Warren-Boardman area of Ohio and Pennsylvania at $70,700, and Lansing-East Lansing, Mich., at $86,600.

In the condo sector, metro area condominium and cooperative prices – covering changes in 55 metro areas – showed the national median existing-condo price was $178,000 in the third quarter, down 15.4 percent from the third quarter of 2008. Four metros showed annual increases in the median condo price and 51 areas had declines.

The metros experiencing condo price gains were San Diego-Carlsbad-San Marcos, at $215,100, up 13.3 percent; followed by the Cincinnati-Middletown area, up 2.0 percent to $119,700; the Toledo, Ohio, area, where the median price of $130,400 rose 1.7 percent from the third quarter of 2008; and the Indianapolis area at $114,400, up 0.8 percent.

Metro area median existing-condo prices in the third quarter ranged from $67,600 in Las Vegas-Paradise, Nev., to $432,800 in San Francisco-Oakland-Fremont. The second most expensive reported condo market was New York-Wayne-White Plains at $297,500, followed by Boston-Cambridge-Quincy at $293,700.

Other affordable condo markets include Reno-Sparks, Nev., at $81,300 in the third quarter, and Jacksonville, Fla., at $91,600.

Regionally, existing-home sales in the Northeast surged 16.7 percent in the third quarter to a pace of 930,000 units and are 6.9 percent higher than a year ago.

The median existing single-family home price in the Northeast declined 9.4 percent to $244,500 in the third quarter from the same quarter in 2008. The best price gain in the region was in Buffalo-Niagara Falls, N.Y., where the median price of $119,700 rose 4.8 percent from the third quarter of 2008; followed by Manchester-Nashua, N.H., at $237,600, up 2.6 percent; and the Pittsburgh area, where the median price rose 1.5 percent to $124,600.

In the Midwest, existing-home sales jumped 13.2 percent in the third quarter to a pace of 1.20 million and are 5.2 percent above a year ago.

The median existing single-family home price in the Midwest was down 5.5 percent to $150,200 in the third quarter from the same period in 2008. After Davenport-Moline-Rock Island, the next strongest metro price increase in the region was in Cedar Rapids, Iowa, where the median price of $145,700 was 7.6 percent higher than a year ago; followed by Bismarck, N.D., at $157,200, up 7.5 percent; and Ft. Wayne, Ind., where the median price rose 6.9 percent to $102,500.

In the South, existing-home sales rose 11.3 percent in the third quarter to an annual rate of 1.97 million and are 5.9 percent higher than the third quarter of 2008.

The median existing single-family home price in the South was $160,000 in the third quarter, down 7.9 percent from a year earlier. After Cumberland and Oklahoma City, the next strongest price increase in the region was in Shreveport-Bossier City, La., at $152,300, up 8.6 percent from the third quarter of 2008; Jackson, Miss., at $141,200, up 4.6 percent; and Durham, N.C., where the median price rose 3.6 percent to $184,300.

Existing-home sales in the West increased 5.6 percent in the third quarter to an annual rate of 1.19 million and are 4.6 percent above a year ago.

The median existing single-family home price in the West was $224,000 in the third quarter, which is 16.4 percent below the third quarter of 2008. The best metro price performance in the West was in Yakima, Wash., where the median price of $158,400 rose 2.7 percent from a year earlier; the Denver-Aurora area at $229,100, up 1.8 percent; and the Kennewick-Richland-Pasco area of Washington, where the median price rose 0.7 percent to $172,200.

Source: NAR

Pending Home Sales Continue to Rise – Updated Statistics

From the desk of Ken Bryant at Lake Chatuge on the state line between Hiawassee, GA and Hayesville, NC

Daily Real Estate News  |  November 2, 2009  |  

Pending home sales rose again, marking eight consecutive monthly gains – the longest streak since measurement began in 2001, according to the National Association of REALTORS®.

The Pending Home Sales Index,^* a forward-looking indicator based on contracts signed in September, rose 6.1 percent to 110.1 from a reading of 103.8 in August, and is 21.2 percent higher than September 2008 when it stood at 90.9.

The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8.