Distressed Sales Made Up 36% Of Q2 Transactions

Posted by Orb Staff on August 13, 2009 No Comments
Categories : Residential Mortgage

existing-home sales, including single-family and condo, rose 3.8% to a seasonally adjusted annual rate of 4.76 million units in the second quarter from 4.58 million units in the first quarter, reports the [link=http://www.realtor.org/press_room/news_releases/2009/08/2nd_Helped?LID=RONav0021][u]National Association of Realtors[/u][/link] (NAR). Sales remain 2.9% below the 4.9 million-unit pace in the second quarter of 2008. Thirty-nine states experienced sales increases from the first quarter, and nine states were higher than a year ago. The District of Columbia showed both quarterly and annual rises. During the second quarter, 129 out of 155 metropolitan statistical areas reported lower median existing single-family home prices in comparison with the second quarter of 2008, while 26 areas had price gains. Distressed sales, which typically sell at a 15% to 20% discount, accounted for 36% of transactions in the second quarter and weighed down median home prices. The national median existing single-family price was $174,100, which is 15.6% below the second quarter of 2008. "There have been sustained sales gains in Arizona, Nevada and Florida, as well as [in] diverse areas such as Maryland, the District of Columbia and Nebraska," says Lawrence Yun, NAR's chief economist. "More recently, we've seen strong double-digit gains in Idaho, Utah, New Mexico, Washington, Hawaii, New York, New Jersey, Maine, Vermont, Wisconsin, Indiana, South Dakota and Montana." The largest sales gain between the first and second quarters was in Idaho, up 67.5%; followed by Hawaii, which rose 24.2%; New York, up 22.3%; Wisconsin, with a 21.7% gain; and Nebraska, with a 20.3% increase. Twelve other states experienced double-digit sales increases from the first quarter. Year over year, California, Minnesota and Michigan are showing double-digit gains from the second quarter of 2008 but are off from the first quarter of this year. "The sharpest price declines continue to be concentrated in metros with high levels of foreclosures, including areas in California, Florida, Arizona and Nevada, where distressed homes comprise many of the transactions," Yun says. SOURCE: [link=http://www.realtor.org]NAR

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