Across Midwest, Home Sales Drop, Opportunities for Buyers Widen

Existing home sales in the Midwest declined almost 10 percent in November compared with last year but remained unchanged from October, the National Association of Realtors reported on Thursday.

The group reported 1.42 million existing-home sales throughout the Midwest in November, down 9.6 percent from 1.57 million last year, spokesman Walter Molony said.

The median existing-home sale price in the Midwest was $165,000 in November, down 3.5 percent from $171,000 last year. This makes the region more affordable for seekers of home mortgages because the national median existing-home sale price stands at $218,000.

David Lereah, the association’s chief economist, said that for every 1 percent drop in home prices, he projects an additional 50,000 buyers are drawn into the market.

“As the housing market recovers from its correction, existing home sales should be rising gradually during 2007,” Lereah said. “We’ve entered a more sustainable period of home sales now, and we expect greater support for prices over time as inventory levels are eventually drawn down.”

Total housing inventories fell 1 percent at the end of November; there are now 3.82 million existing homes available for sale. This is considered a 7.3-month supply at the current sales pace, which emphasizes the fact that we’re in a buyer’s market and those looking for a mortgage loan should act quickly to be assured of the best deal.

Also helping buyers? Freddie Mac reported that the national average home loan rate for a 30-year, conventional, fixed-rate mortgage was 6.24 percent in November, down from 6.36 percent in October.

“This is increasing buying power at the same time that sellers are showing a willingness to negotiate price and terms,” association President Pat Combs said in the release. “Combined with a plentiful supply of homes on the market, there’s a window for buyers now with conditions that we haven’t seen prior to the beginning of the housing boom in 2001.”