The National Association of Realtors reports an increase in home sales amid growing recession fears. (Rob Friedman/iStockphoto)
Earlier this week, we wrote about Cyberhomes data that points to
an improvement in California's housing market. Well, data released today by the
National Association of Realtors supports those findings, and points to improvement in several other states' housing markets as well.
Existing-home sales, which includes single-family homes, townhomes, condominiums and co-ops -- increased 5.5 percent from August to September, and 1.4 percent between September 2007 and last month, the trade organization says.
“The sales turnaround which began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri and Rhode Island," says Lawrence Yun, NAR chief economist.
Buyers have been spurred to buy because of lower housing prices and low interest rates, says NAR President Richard F. Gaylord.
However, the trade organization did note that the inventory of homes for sale remains high, a drag on the housing market. Housing inventory fell 1.6 percent at the end of September, but there is still a 9.9-month supply of homes on the market at the current sales pace, NAR says.
Furthermore, home prices continue to fall, with the national median existing-home price at $191,600 in September, a decrease of 9 percent from September 2007, when the median prices was $210,500, NAR says. “Compared to a fairly small share of foreclosures or short sales a year ago, distressed sales are currently 35 to 40 percent of transactions. These are pulling the median price down because many are being sold at discounted prices,” Yun explains.
But despite today's positive news about existing-home sales, it looks like it'll be a while before the housing market is out of the woods, considering growing fears about a global recession and plunging stock markets worldwide. —Lauren Baier Kim