The housing market is showing some signs of recovery, still, many industry experts believe we have yet to hit bottom. With all the news surrounding the errors in paperwork on foreclosures, and the suspension of the sale of foreclosed homes by some of the biggest banks in the country, the month of October is likely to show a precipitous drop in home sales. However, for the month of September, we see an increase in the number of existing home sales when compared to August.
According to the National Association of Realtors in their latest report on October 25th, the sale of existing homes increased 10% from August to September bringing the sale of existing homes to a seasonally adjusted annual rate of 4.53 million for the month of September. The sale of foreclosed and distressed properties accounted for over 30% of all sales transactions in September.
Also in the report, the median home price took a hit, dropping 2.4% in September when compared to the previous year. The median home price for September ended at $171,700. Many housing analysts are expecting these home values plunge deeper over the next year or two, depending on who you ask. According to a survey done by MacroMarkets LLC where 109 economists and housing analysts where polled, half expect prices to hit bottom in 2011, the other half expect prices to start a rebound in 2012. This differs from a poll done by MacroMarkets back in June.
The Wall Street Journal does a quarterly survey of housing market conditions in 28 of the major metropolitan areas across the United States. In 19 of the 28 markets, they found that inventories of unsold homes increased for the third quarter when compared to the same time last year. Some market inventories increased drastically in California, namely, San Diego, Los Angeles, and Sacramento. Currently, the nation’s inventory of unsold homes is near a 10.7 month supply, at 4.04 million units. That is three to five months longer than what is considered a healthy inventory.
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