It’s been a tough two years for the housing industry. Across the country, foreclosures, short sales, and declining real estate prices have dominated the housing news. Real estate brokers and home builders have been looking for even a sliver of silver, in hopes that their fortunes were ready to turn.
Look no further, because it’s looking like May 2009 figures are finally pointing in the right direction in many housing markets. Markets where activity has been on a downward course and prices have been dropping are showing new signs of life, and those markets are happy to share their figures, hoping good new will be contagious.
The Louisville, KY market is one of those markets that found something good to talk about. The median price of homes in the area has increased 1.5%, which doesn’t sound like much until you realize it’s the first increase since January 2008.
The Naples, FL market was proud to announce that home sales have increased 36% over a year ago, while overall pending home sales has jumped an incredible 101% compared to May 2008. The Florida housing market has been heavily depressed by bad mortgage loans and bank failures, so seeing numbers like these are gratifying. Naples Area Board of Realtors President Brett Brown said the numbers reflect a trend toward decreasing inventory, leveling prices and speedier turnarounds on home sales that took shape in November. Of course, they also show median home prices have dropped from $314,000 last year to $174,000 this year, just to be fair.
Birmingham, AL also showed an increase in home sales of 8% from April. Foreclosure sales were at 29% of that figure, down from 38% in April, which they see as a positive sign for newer home sales. Overall, though, housing prices are down 14% from the same time last year.
An area that was more flat that in trouble now showing positive signs is the Buffalo Niagara area of New York State. For the first time in over a year, they’ve shown an upward thrust in home sales, even if it’s only 3.3%. May was also up 21% from April. Expectations are tempered somewhat because pending home sales are down 5.9% from a year ago.
All of this is good news to the housing industry as a whole, especially home building companies, who are hoping that buyers are ready to not only buy homes, but new homes, as some building projects have resumed across the country. That might be a bit too optimistic, especially because of the high number of houses in great shape at greatly reduced prices that are still on the market. But there are still a segment of the community that will only go for a new house, and these home builders are counting on that.
See more:
Louisville housing market isn’t so bad, PVA says
Realty Times – Birmingham, Alabama Market Conditions
Naples, Florida Real Estate Updates
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Augusta, Georgia, is not showing much improvement. For the first time in ten years, May sales where below April's. We're off 17% on 2008's numbers, which in turn where down 24% on 2007. The home buyer tax credits (both state and federal) will hopefully generate some life for our mid-summer market, but as of this writing, the numbers just point in a different direction
That is great news, and things seem to be picking up a little in my area as well. Great news for the housing industry
Might I point out that the Toronto market is picking up well also, with home staging helping things to run smoothly.
I think this is a good reminder that all real estate is local. Here, we never had the huge run up in prices that other parts of the country did so we just didn't have as much to come down. As a result, the # of homes sold is down but the sales price is pretty stable.
I think Dallas is showing some improvment but it might just be the selling season. We willsee after the selling season is done.
It is very encouraging that areas like Louisville, Naples, Buffalo and Niagara are showing improvement. Expecially market like Louisville and B'ham which are pretty normal areas.
Glider, I admit that it’s really good news for the housing industry, but it’s bad news for the young to buy new house.
We have seen stability in many of the price points in my area of Metrowest Massachusetts. Prices certainly have not started to rise but the number of transactions has increased over last year. The upper end of the market is still very weak.
It’ great to see an increase, even a slight one. Rental markets are off too. Some have moved in with family or friends. The unemployment rate above 10% is a serious hindered to these markets coming back. The Courier Journal reported that the unemployment numbers might appear lower than they are because so many have just given up on employment.
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