My Real Estate Blog

Existing home sales are on the rise, according to the National Association of Realtors. Buyers, reacting to improved affordability, quickened the pace of sales across the nation. The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970.

Will the market continue to grow despite the recent rise in interest rates?  Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable.

How are sales faring in your area? Regionally, existing-home sales in the Northeast rose 2.7% to an annual pace of 770,000 in November but are 33.0% below the cyclical peak in November 2009. The median price in the Northeast was $242,500, which is 9.2% higher than a year ago.

Existing-home sales in the Midwest increased 6.4% in November to a level of 1.00 million but are 35.1% below the year-ago surge. The median price in the Midwest was $138,900, down 1.1% from November 2009.

In the South, existing-home sales rose 2.9% to an annual pace of 1.76 million in November but are 26.1% below the tax credit surge in November 2009. The median price in the South was $148,000, down 2.6% from a year ago.

Existing-home sales in the West jumped 11.7% to an annual level of 1.15 million in November but are 19.0% below the sales peak in November 2009. The median price in the West was $212,500, up 0.4% from a year ago.

As existing-home sales rise, the total inventory of homes on the market reduces. This positive trend brings more balance between buyers and sellers.