2009 Q4 home sales surge. What does it mean for your market?
Did you read the good news in the NAR press release on February 11? If you missed it, here is the lead-in:
“Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey by the National Association of Realtors®.
Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.”
Think the increase is all foreclosures and abandoned homes? Not according to the survey:
“Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.”
So what did make a big impact on home sales?
If you’ve been actively selling, you already know. According to Lawrence Yun, NAR chief economist, “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates.”
Having these same conditions prevail for the next few months in 2010 should continue to provide strong activity and selling opportunities in most markets. And it’s not just more units being sold at ever decreasing prices.
“In the fourth quarter, 67 out of 151 metropolitan statistical areas reported higher median existing single-family home prices in comparison with the fourth quarter of 2008, including 16 with double-digit increases.”
But how do these national statistics and trends impact your local market and opportunity?
NAR also provides some excellent data for state and local markets here.
You’ll want to visit this page regularly to find your own local market statistics – current, historical and trends.
For example, while nationally home prices averaged a 4.1% decrease from 2008, numerous local markets realized substantial increases in value in 2009. Most local markets in Ohio all saw increases. Anaheim in Orange County, California saw a 6% increase in value, as did Birmingham, Alabama, Little Rock, AR and Kansas City. And yes, many other local markets experienced average price decreases from the prior year.
Whether your local market is trending up or prices are still in decline, there are always people who need to move. Sellers (even banks) need professional marketing services by local, knowledgeable Realtors. And buyers want to save time and effort while bargain hunting. As you know, 90% of home buyers use the internet as a key part of their search process. Make sure that all of your listings have the robust information and rich media content that will attract a greater pool of potential home buyers.
Doing so saves you time and effort as well. Having a visual showcase of a distressed property ensures that bargain hunters don’t waste your time visiting a property that will cost them too much additional money in repairs for them to consider buying in the first place.
No trend or economic condition stays constant.
The home buyer tax credit will eventually cease. Mortgage interest rates will increase. Other economic conditions will become more important than they are today. Employment concerns in your local market will evolve and be very important to your own opportunity.
Make sure you stay current with your local market statistics and trends and can use them to your advantage when working with consumers who only hear about the national stats. You’ll quickly gain their confidence as THE local real estate expert – the one they turn to when it’s time to buy or sell.
