Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.9 percent to a seasonally adjusted annual rate (1) of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8 percent below the 6.60 million-unit level in February 2007.
Of course, one positive month does not make a trend, but are buyers ready to place their bets on an upswing?
The market was way past due for a correction, and we got that in spades. Unfortunately, while the prices have come down, buyers have gotten cold feet and even colder credit. The national mortgage crisis has dampened any rush on lower prices due to tightened credit, and sellers who can't get out from under their inflating payments are still succumbing to foreclosure. It will take some time for average buyers to feel confident enough to put their cash and credit on the line.
Further in the article, we find what region is dragging the national numbers down. It's the West of course. Yikes!
Existing-home sales in the West slipped 1.1 percent to an annual rate of 920,000 in February, and are 29.2 percent below a year ago. The median price in the West was $290,400, down 13.4 percent from February 2007.
If we have positive sales figures for March, I may become convinced that the we have seen the bottom of the recent market, and the only place to go is up. Regardless, if you have the resources to buy, now is a good time,especially if you plan on holding on to the property for a while. If you're someone who likes to flip houses and get a quick profit, good luck with that. I'll see you at auction. If you want to buy now while prices are low and hold on to it for a few years, then, well, I'll be happy to be your Broker down the road.
UPDATE: For a little old-fashioned optimism, head on over to Sacramento Land (ing). Sure to add a bit of cheer to your day.
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