2Q09 Homes Sales Rising

Chuck Sinclair — Wed, 02 Sep 2009 20:36:18 +0000

The National Association of Realtors has issued a report with second quarter existing homes sales showing healthy gains from the first quarter in the vast majority of states. Price declines are a major driver for the sales increase because they are making housing more affordable. Total state existing home sales rose to 4.76 million units in the second quarter, up from 4.58 million units in the first quarter. Year on year this increase is lower than the 4.90 million unit sales recorded in the second quarter of 2008.
Lawrence Yun, National Association of Realtors chief economist, said the sales gain appears to be sustainable. “Low interest rates, lower home prices and the first time buyer tax credit are major drivers for the sales gains.
Yun explained housing’s impact on the overall economy. ” Given the need for related goods and services, each home sale pumps an additional $63,000 into the economy – that’s how the housing engine traditionally pulls us out of recession. In addition, sales are drawing down inventory and that will help stabilize homes values, which in turn will lessen foreclosure pressure and boost credit availability for other sectors of the economy.”
Foreclosures and short sales accounted for 36% of the second quarter transactions. These sales are typically at a 15 to 20 percent discount which explains the price declines.
We’re experiencing the national sales increase trend in Vero Beach. Our first quarter sales were 357 units. Second quarter sales rose 51% to 538 units. July sales were 213 units which is the highest monthly sales since the third quarter 2007. We are also experiencing price drops as the market is making corrections from the red hot sales times in 2005.

Vero Beach Real Estate » Vero Beach Realtor

2Q09 Homes Sales Rising