Good Afternoon, Everyone!
By now, you must have heard or read National Association of Realtors Chief Economist Lawrence Yun, and his comments on the increase in the sale of Existing Homes for February, 2008. Revised NAR statistics show a 2.9% increase in units sold during February. The last time unit sales increased, it was about 90 degrees outside, and we were cooking steaks on the BBQ - July, 2007.
Indeed, prices have dropped a historic 8.2% in the year ending February, 2008. One year ago, the Median U.S. Home sold for $213,500. Today, that same home would cost $195,900. Units sold dropped 24 percent year-over-year, between February, 2007 and February, 2008.
The Million Dollar Question, however - Have prices fallen enough to increase buyer demand? Or, are there still thousands of fence sitters waiting for prices to fall even further? (My bet, knowing human nature - we still have a lot of fence sitters!)
Tightened underwriting standards have pushed thousands of prospective homebuyers with questionable credit off the playing field. Average mortgage rates, although near historically-low levels, will not be offered to these marginal prospective buyers.
However, U.S. Homes for Sale Inventories, in aggregate, fell 3.0% during February, to an average supply of 9.6 months, down from a 10.2 month supply average a month earlier.
Although there is a long way to go before demand-supply balance is close, at least these recent numbers are somewhat encouraging, and provide needed variety in a long line of bad news in the housing sector.
Chicago Metro Area Sales Figures are not yet available from NAR.
Please review our comments and thoughts in our posting today via BlogChicagoHomes.com. You will also find links to Jeff Bater's story, and relevant Lawrence Yun video, in today's Wall Street Journal.
DEAN & DEAN'S TEAM CHICAGO
