Home sales grow, aided by more stable prices
15.02.2011 00:01
Home sales grow, aided by more stable prices
By Les Christie, staff writerFebruary 10, 2011: 11:09 AM ETNEW YORK (CNNMoney) -- Home sales volume rose sharply in the final three months of 2010, aided by more stable prices on a year-over-year basis, a real estate industry group said Thursday.
Sales jumped 15.4% in the fourth quarter to an annual rate of 4.8 million units compared with 4.16 million a quarter earlier, the National Association of Realtors said.
Prices of single-family homes stabilized, rising 0.2% compared with 12 months earlier. The national median for homes sold during the period was $170,600.
"Home sales clearly recovered in the latter part of 2010, and are helping to absorb the inventory, including many distressed properties," said Lawrence Yun, chief economist of the Realtors' group.
Sales volume was particularly strong in the West region, up nearly 20% compared with the three months ended Sept. 30.
"A good portion of the sales activity in the West has been driven by investors taking advantage of discounted foreclosures, with high levels of all-cash transactions," said Yun.
The number of sales fell nearly 20% nationally, however, compared with the same period in 2009, when the homebuyer's tax credit was in effect.
"The tax credit clearly poached demand from the second half of 2010," said Jonathan Miller, CEO of Miller Samuel, a New York-based appraiser. "It artificially stimulated sales in the first half and artificially lowered it in the second."
Many housing market factors were favorable through the end of the year. Prices are very affordable for working families in most markets, interest rates are extremely low and bloated inventories offer a wide choice of properties.
The missing ingredient is a positive economic environment, specifically when it comes to hiring.
"An improving housing market and job growth will go hand in hand," said Yun. "The housing recovery will mean faster job growth."
He projects than a 300,000 increase in 2011 home sales will lead to the creation of about 150,000 to 200,000 jobs to the overall economy.
The survey revealed that single-family home prices held up better than those of condos. The national median for condos fell 6.4% compared with 12 months earlier, to $164,200. In some markets, condo prices have rarely been so affordable.
The median condo price in the Las Vegas metro area, for example, was just $60,700; in Phoenix, $68,900; and in Miami, $81,900. Reno, Nev., had the lowest condo prices in the nation, a median of $60,300.
As for single-family homes, Youngstown, Ohio, the old steel town struggling to find its way back into the modern economy, recorded a median of just $62,800 during the fourth quarter. That was a decline of nearly 14% from already bargain-basement prices a year earlier.
Toledo, Ohio at $74,500, Lansing, Mich. at $79,500, and South Bend, Ind. at $76,800 also recorded very low prices. Outside the Rust Belt, Ocala, Fla., was the lowest priced metro area at $80,200.
Honolulu had the highest single family home prices during the quarter, a median of $598,200. San Jose, Calif.'s median was $591,000 and San Francisco's was $558,200.
First Published: February 10, 2011: 10:23 AM ETRight Now
Sponsored by: President proposes his 2012 budget: Deep cuts will help slow deficits in the next 10 years but the plan fails to address long-term problems. Jacob Lew, director of the U.S. Office of Management and Budget, says 'we have to make tough tradeoffs' in the president's budget. President Obama's new budget would eliminate or reduce funding to a total of 200 government programs for savings of $33 billion in 2012 alone.
| Overnight Avg Rate | Latest | Change | Last Week |
|---|---|---|---|
| 30 yr fixed | 5.04% | 4.96% | |
| 15 yr fixed | 4.31% | 4.19% | |
| 5/1 ARM | 3.60% | 3.54% | |
| 30 yr refi | 5.05% | 4.98% | |
| 15 yr refi | 4.31% | 4.21% |
Enter Zip code:
Select a product: AutoHomeLifeLong-Term CareHealth
Insurance news and resources from BankRate
by Bankrate.com View rates in your area
Find personalized rates:Card typeCredit typeCard issuer
Today's featured rates:
- Find Homes for sale
- City, state, or zip
- Price rangeMin$10,000$20,000$30,000$50,000$100,000$130,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$550,000$600,000$650,000$700,000$750,000$800,000$850,000$900,000$950,000$1M$1.1M$1.2M$1.25M$1.4M$1.5M$1.6M$1.7M$1.75M$1.8M$1.9M$2M$2.25M$2.5M$2.75M$3M$3.5M$4M$5M$10M$20Mto$10,000$20,000$30,000$50,000$100,000$130,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$550,000$600,000$650,000$700,000$750,000$800,000$850,000$900,000$950,000$1M$1.1M$1.2M$1.25M$1.4M$1.5M$1.6M$1.7M$1.75M$1.8M$1.9M$2M$2.25M$2.5M$2.75M$3M$3.5M$4M$5M$10M$20MMax
- Property TypeAny typeSingle-Family HomeCondoTownhomeCoopApartmentLoftTICApt/Condo/TwnhmMobile/ManufacturedFarm/RanchLot/LandMulti-Family HomeIncome/InvestmentHouseboatUnspecified
- Find a home in: | | |
- | | |
| Markets | Last | Change | % Change |
|---|---|---|---|
| 12,267.51 | -5.75 | -0.05% | |
| 2,817.18 | 7.74 | 0.28% | |
| 1,332.23 | 3.08 | 0.23% | |
| 3.61 | -0.03 | -0.88% | |
| 1.35 | -0.01 | -0.54% |
| Company | Price | Change | % Change |
|---|---|---|---|
| 4.90 | 0.02 | 0.41% | |
| 18.82 | 0.12 | 0.64% | |
| 14.93 | 0.16 | 1.08% | |
| 16.07 | -0.31 | -1.88% | |
| 11.64 | 0.31 | 2.77% |
Sections
Dick Costolo, Twitter's CEO, said that the service is providing a social framework around TV that can save advertisers' business models. | President Obama's budget proposal -- generating $39 trillion in revenue through 2021 -- would boost taxes for the nation's wealthiest families, for big banks, and for the coal, oil and gas sectors. | Dick Costolo, Twitter's CEO, said that the service is providing a social framework around TV that can save advertisers' business models. | The Small Business Administration will be flying without any additional stimulus appropriations in 2012. Compared to 2010, the proposed budget would be a 45% cut. | When it comes to celebrating Valentines Day, residents of Phoenix are spending the most on roses, heart-shaped boxes of candy and, yes, lingerie. |
Please create a screen name to access this feature.
Screen name (Select one with 3-12 characters; Numbers and letters only)
Forgot password
Enter your e-mail address below and we will send you an e-mail with a link and code to reset your password.
Password selection
Reset code
New password
Log in & let's get started!
Password
Remember me for two weeksNot a member yet?
Sign up or
Screen name
Select one with 3-12 characters;Numbers and letters only
You will receive an e-mail to validate your account
Password
Make it 6-10 characters, no spacesType what you see in the grey box
If you can't read this,Yes, I would like to receive occasional CNNMoney member updates about new features and special offers.
CNNMoney will use the information you submit in a manner consistent with our . By clicking on "sign up" you agree with and and consent to the collection, storage and use of this information in the U.S. subject to U.S. laws and regulations. ()
For our international users, please be aware that the information you submit when registering for our services is collected in the United States of America. In addition to being subject to our Privacy Policy, the collection, storage, and use of your data will be subject to U.S. laws and regulations, which may be different from the laws and regulations of your home country. By registering for this service, you are consenting to this collection, storage, and use.
We're Sorry!
This service is temporarily unavailable. Please try again soon.
Thanks!
Please check your e-mail and click the link to confirm your membership. Then, you'll be ready to participate in all activities and conversations on our site.
Add comment