Arizona, Western States See Existing Home Sales Rise
Existing home sales in the Western U.S. rose 0.8 percent to an annual pace of 1.32 million in November, but remained 17.5 percent lower than a year earlier, according to the Phoenix Business Journal.
The median price in the West was $351,000, down 0.8 percent from November 2005, according to the National Association of Realtors. In the Grand Canyon State, sales and prices have crept downward this year after five years of record or near record growth.
But Arizona mortgage rates remain low, offering opportunities for first-time buyers who have been on the sidelines.
Nationally, real estate sales continued to recover last month following a rise in October, suggesting a turn in the market. Existing home sales - including single-family, townhomes and condos - rose 0.6 percent to 6.28 million units in November from 6.24 million in October. That’s 10.7 percent below the 7.03 million-unit pace in November 2005.
The national median existing home price for all housing types was $218,000 in November, 3.1 percent lower than November.
“As the housing market recovers from its correction, existing-home sales should be rising gradually during 2007 - it looks like we may have reached the low point for the current cycle in September,” said David Lereah, NAR’s chief economist. “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.”
According to Freddie Mac, the national average rate for a conventional 30-year, fixed-rate mortgage (the industry’s most common home loan) was 6.24 percent in November, down from 6.36 percent in October. The benchmark mortgage rates came in at 6.33 percent in November 2005.
“Now mortgage interest rates are the lowest they’ve been since January, and it’s the first time since August of 2005 that interest rates are lower than a year earlier,” said NAR President Pat Vredevoogd Combs.
“This is increasing buying power at the same time that more and more sellers are showing a willingness to negotiate price and terms.”