General Market info

Existing-Home Sales Up in 2009

Existing-Home Sales Up in 2009

According to the National Association of Realtors®, existing-home sales fell as expected in December after first-time buyers rushed to complete sales before the original November deadline for the tax credit. However, prices rose from December 2008 and annual sales improved in 2009.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – dropped 16.7 percent to a seasonally-adjusted annual rate of 5.45 million units in December from 6.54 million in November, but remain 15.0 percent above the 4.74 million-unit level in December 2008.

For all of 2009 there were 5,156,000 existing-home sales, which was 4.9 percent higher than the 4,913,000 transactions recorded in 2008; it was the first annual sales gain since 2005.

“It’s significant that home sales remain above year-ago levels, but the market is going through a period of swings driven by the tax credit,” said NAR Chief Economist Lawrence Yun. “We’ll likely have another surge in the spring as home buyers take advantage of the extended and expanded tax credit. By early summer the overall market should benefit from more balanced inventory, and sales are on track to rise again in 2010. However, the job market remains a concern and could dampen the housing recovery – job creation is key to a continued recovery in the second half of the year.”

The national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.93 percent in December from 4.88 percent in November; the rate was 5.29 percent in December 2008, according to Freddie Mac.