February 2009 Market Report

Home Sales Pace

Sales of existing homes rose in December after two months of declines, according to the National Association of Realtors. Sales increased to 4.74 million units, a seasonally adjusted 6.5 percent increase from the 4.45 million units in November. However, compared with the previous year, December's sales were down 3.5 percent.

The national median home price continued to drop in December, falling to $175,400 from $180,300 in the previous month. The median price has fallen 15.3 percent during the last year from its starting point at $207,000 in December 2007.

The NAR defines existing homes as all previously owned single-family homes, townhouses, condominiums, and co-ops. The group "seasonally adjusts" the sales numbers to factor in things like inclement weather, school sessions, winter holidays, etc to smooth out the trends. The NAR also describes its sales data based on an annual pace. The monthly figure represents the total number of housing units sold in one year if the current rate were to continue unchanged.

Sales Pace by Region

Existing home sales increased in every region of the country in December, except the Northeast. Sales dropped there by 1.4 percent from November to 740,000 units. In a year-over-year comparison, sales were down by 14.3 percent.

The Midwest experienced a monthly growth in sales of 4.0 percent to 1.04 million units, although sales were down 10.3 percent for the year.

Sales jumped up 7.4 percent in the South to 1.74 million units in December, the first increase in two months. However, 11.2 percent fewer existing home sold in that area in 2008.

The West saw the largest up tick in sales with a 13.6 percent increase to 1.25 million homes. That accounts for the largest volume of sales in any month in the past year, and overall sales are up 31.6 percent in the West.

Home Prices

The median home price, the point at which half of all homes are sold for more and half are sold for less, fell in December for the sixth consecutive month, with prices sliding in all parts of the U.S. but the South.

The median price for homes in the Western United States fell to $213,100, down from $241,000 in November. The current price represents a 31.5 percent decrease, though, from December 2007.

The Midwest median sales price barely moved in December, slipping down to $140,800 from $140,900 the previous month, and down by 11.4 percent from $159,000 on a year-over-year basis.

In the Northeast, median home prices fell to $235,000 from $257,400 the month before. Prices were down 7.8 percent from the year before when the median was $254,900.

The median price in the South climbed to $158,600 from $153,600 in November. Compared with one year earlier, the price was still down 8.0 percent.

Inventory

The number of existing homes for sale in the U.S. fell to its lowest point of the year to 3,676,210 units, an 11.7 percent decrease from 4,163,000 units in November. December's inventory was down 7.5 percent on a yearly basis and represented a 9.3-month supply at the current sales pace