In the latest U.S. Department of Housing and Urban Development report, sales of new one-family houses in October 2009 were at a seasonally adjusted annual rate of 430,000. There was a registered 6.2 percent improvement for the entire country MoM and 5.1 percent YoY.
The South area had the most impressive MoM gain with 23.2 percent as well as YoY increase with 8.4 percent. On the other hand, it was a bit disappointing for the Midwest area with a plunge of 20.0 percent MoM and 11.1 percent YoY.
On the other hand, the National Association of Realtors (NAR) has announced that pending home sales have risen 3.7 percent to 114.1, up by more than 10 points MoM. The YoY rise is the highest increase ever recorded according to the NAR.
It adds, “The PHSI in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago. In the Midwest the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008. Pending home sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago. In the West the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.”
We’re expecting better results for the coming reports since the first-time homebuyer’s tax credit was already extended. As NAR chief economist Lawrence Yun commented, “Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus. This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.”
With all these good things happening lately, should we expect brighter prospects for the market? We must realize how vulnerable the market is to minor commotions and any incidents that can shake the industry will likely lead to adverse effects on sales immediately.
Andy Denton is the COO of www.Realty.com. Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com.
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