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Home Sales & Prices Showing Further Stability

By Judi Desiderio, Wednesday, December 23, 2009
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Wall Street Journal — front page– , lead story on all business news networks…

National Association of Realtors yesterday said existing home sales rose 7.4% in November from October’s seasonally adjusted annual rate of 6.54 million units. This was the highest rate posted since February 2007.

Approximately 50% of these sales were to first time home buyers taking advantage of the tax credit available to them.

Low interest rate further fueled this jump in home sales.

Federal Housing Finance Agency’s index rose 0.6% in October compared to November. The FHFA index tracks the purchase price of homes backed by Fannie & Freddie. The S&P/ Case Shiller Home Price Index, another closely watched measure of home prices also shows improvement.

Keep in mind these are National figures. On a local level, we have seen heightened activity since August. That sales activity is remaining steady even through the holiday season– a time of year which is historically quiet for real estate deal making. Not so in 2009– there are many very savoy investors and home buyers jumping in to find the water temp perfect!