Palms at Wailea Real Estate » Blog Archive » FEBRUARY EXISTING HOME SALES

FEBRUARY EXISTING HOME SALES

March 23rd, 2009

Some good news from the National Association of Realtors and what it means for Maui Real Estate.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 5.1 percent to a seasonally adjusted annual rate of 4.72 million units in February from a pace of 4.49 million units in January, but are 4.6 percent below the 4.95 million-unit level in February 2008. Seasonal adjustment factors are more volatile in winter months, but sales rates over the past few months show dampened sales activity.

We seem to be nearing some kind of bottom here.

Lawrence Yun, NAR chief economist, said first-time buyers accounted for half of all home sales last month, with activity concentrated in lower price ranges. “Because entry level buyers are shopping for bargains, distressed sales accounted for 40 to 45 percent of transactions in February,” he said. “Our analysis shows that distressed homes typically are selling for 20 percent less than the normal market price, and this naturally is drawing down the overall median price.”

Understanding that mix is driving announced price declines is critical to understanding what is going on.

Yun said a recovery in the West is much stronger than expected. “Strong sales gains in the West are led by California, where the median listing price is beginning to rise for the first time in three years,” he said

THIS is very encouraging. What does this mean for Maui Real Estate? It means the mindset of home buyers is changing and more and more people are acting. This should translate to increased activity on Maui in the next few months.

FEBRUARY EXISTING HOME SALES

Recently Posted

Monthly Archives