Wednesday, June 24, 2009

New & Existing Home Sales Remain Down Nationwide

Existing Home Sales for May have been announced by the National Association of Realtors. "Existing homes" for this sales data mean detached houses, condos, and attached/townhouses.

According to NAR: Sales rose 2.4% from April, which is to be seasonally expected. Sales declined YOY from May 2008 by 3.2%. National existing months of supply hovers at 9.6%, and the national median price was $173,000 in May, down 16.8 percent from a year earlier. "Distressed" properties (foreclosures, short sales, bank-owned) declined to 33% of all sales in May.

For the South: May sales are 8.9% below a year ago. The median price in the South was $157,400, down 9.9 percent from May 2008.

Click for larger image in new window.

Mortgage rates spiked suddenly in May and are currently about 5.5% for a 30 yr fixed. This jump may cause slower sales in June, but also cause some pending or contingent contracts from May to fail to close.

New Home Sales:

The Census Bureau reports record low home sales, the lowest of a May going back to 1963. Median Price: $261K. 10.2 months of inventory.

LOCALLY: In the Charlottesville MSA, new homebuilding is down -59.35% over 2008.

Click for larger image in new window.

The "Good" News? The Fed Will Continue to Try to Control Mortgage Rates

But in Today's Federal Open Market Committee meeting, the board of governors of the Federal Reserve will leave things largely the way they are for the near future, due to prospects for slow economic recovery:

[The] Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability. The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period. As previously announced, to provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of up to $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt by the end of the year. In addition, the Federal Reserve will buy up to $300 billion of Treasury securities by autumn.

Related Reading:
May Existing Home Trends - National Association of Realtors
US Census Bureau Report
New Home Sales Record Low For May - Calculated Risk
New Home Sales: Down the Rabbit Hole - The Big Picture

1 comment:

Anonymous said...

Wasn't sure where to put this, but thought this link was relevant to the bubble blog.