Nov 24 Real Estate Market Update

It shouldn’t come as a surprise for anyone that the October home sales were lower…given the constant barrage of negative news…

The National Association of Realtors said Monday that sales of existing homes fell 3.1 percent to a seasonally adjusted annual rate of 4.98 million units in October, from a downwardly revised pace of 5.14 million in September.

The median sales price plunged 11.3 percent from a year ago to $183,000. That was the largest year-over-year drop on records going back to 1968, and the lowest median sales price since March 2004.

NOW FOR SOME GOOD NEWS

Sales were up 40.5 percent in the West compared with October last year, without adjusting for seasonal factors. Buyers in places like Las Vegas and Orange County, Calif., snapped up distressed properties at bargain prices. First time buyers are especially benefiting from this current market.

OK, now the important part….nearly 50% of all sales are Short Sales and REOs.

Nationwide, the Realtors group estimates that sales of distressed properties made up 45 percent of all property sales in October.

There were 4.23 million unsold homes on the market in October, down nearly 1 percent from a month earlier.

At the current sales pace, it would take 10.2 months to sell all the properties.

Until the inventory of homes falls to more normal levels, analysts say, the housing slump is likely to persist. Inventories are being driven higher by a massive wave of mortgage foreclosures.

Dave