The trend in firming home prices solidified in the second quarter of
2010. The latest figures from the National Association of REALTORS show
more metropolitan areas posted home price increases compared to a year
ago. Resales also increased, both from a year ago and from the first
quarter of this year.
The national median existing single-family price was $176,900 in the
second quarter, up 1.5 percent from $174,200 in the same period of 2009.
In the second quarter, 100 of the 155 metropolitan statistical areas
tracked by NAR registered higher median existing single-family home
prices compared to the second quarter of 2009. Fourteen metros posted
double-digit price increases. In the first quarter of this year 91 areas
had higher prices, while only 26 MSAs experienced annual price gains in
second quarter of 2009.
The median price is influenced by the mix of homes that were sold and
does not reflect pure appreciation or depreciation. The recorded home
prices in many markets were significantly depressed last year because of
a large percentage of distressed homes sold at discount. As more
normal, non-distressed home sales are occurring, the median price in
many areas is showing higher values.
State Existing Home Sales
Total state existing-home sales, including single-family and condos,
rose 9.1 percent to a seasonally adjusted annual rate of 5.61 million
units in the second quarter up from 5.14 million units in the first
quarter. Resales were 17.3 percent above the 4.78 million-unit pace in
the second quarter of 2009. Distressed homes accounted for 32 percent of
second quarter sales, down from 36 percent a year ago.
The District of Columbia and 47 states experienced increases in
existing-home sales on a year over year basis, driven in part by the
home buyer tax credit as well as continued historic low mortgage rates.
Metro area condominium and cooperative prices covering changes in
55 metro areas showed the national median existing-condo price was
relatively flat at $175,700 in the second quarter, down 0.5 percent from
the second quarter of 2009. Twenty-six metros showed increases in the
median condo price from a year ago and 29 areas had declines; the first
quarter of 2010 showed 24 metros up, while only four metros saw annual
price gains in second quarter of 2009.
Existing-home sales rose in the Northeast, Midwest and the South,
while median home prices increased in two of the nation’s regions the
Midwest and the West while declining in the South and Northeast.
The median existing single-family home price in the Northeast
declined 3.2 percent from a year ago to $238,000. Resales in the region
jumped 14.9 percent in the second quarter to a level of 980,000 units
and were 23.6 percent above the level in the second quarter of 2009.
In the Midwest, the median existing
single-family home price increased to $148,500 from the second quarter
of 2009 up 1.4 percent. Existing-home sales in the Midwest rose 14.5
percent from the first quarter of this year to 1.30 million units —
20.9 percent above their level in the second quarter of 2009.
In the South, the median existing
single-family home price slipped 2.0 percent to $155,500 in the second
quarter from the second quarter of 2009. Existing-home sales in the
South increased 10.9 percent in the second quarter to an annual rate of
2.10 million and were 18.8 percent above a year ago.
The median existing single-family home price in the West
rose 2.6 percent to $219,700 in the second quarter from a year ago.
Existing-home sales in the West fell 2.6 percent in the second quarter
to an annual rate of 1.23 million but were 7.6 percent higher than in
the second quarter of 2009.
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NAR analysts indicate that the correction in home prices appears to
have ended in 2009. So far this year the market has seen relatively flat
national home prices, which appear to be supported by market
fundamentals. But prices in some areas remain below replacement
construction costs, so even with an elevated supply of existing homes on
the market dont expect any consequential movement in home prices for
the foreseeable future.
Record low mortgage rates are likely to continue, and so will help
cushion a slowdown in sales during the summer months. Those low rates,
in addition to stable and affordable home prices in most areas, will
provide buyers with opportunities to purchase homes, even in the absence
of the tax credit program. But there are still concerns about the job
market. Job creation will give home buyers more confidence, but the
market over the next few months is likely to be below what we would
expect for the size of our growing population. As bank balance sheets
improve, credit restrictions should also gradually improve.
Realty One Group
2831 St Rose Pkwy ste 100
Henderson, NV 89052