January 2009 has come and gone bringing more unhappy news about the local home sales market. Total sales last month were the fewest for a January since 1998. Only 564 closings were reported. A bright spot continues to be inventory, now at 10,332 listings compared to 11,757 in January a year ago, showing a decline of 12%.
Focus on Foreclosure Sales: Foreclosures had significant impact on prices in January. The average price for TOTAL Residential Sales dropped 21% and the median price was down by 15%. Because of this, we have broken out Foreclosure Sales vs. Non-Foreclosure Sales. Here’s a look at the January report with this revision:
Foreclosures vs. Traditional Home Sales (Non-Foreclosure Sales):
JANUARY 2009 JANUARY 2008 VARIANCE
Total Residential Sales: 564 877 - 36%
Total Foreclosure Sales: 252 224
Total Traditional (Non-Foreclosure Sales): 312 653
Average Sales Price, Total Residential Sales: $151,584 $192,152 - 21%
Average Sales Price, Total Foreclosure Sales: $75,697 $75,023 0
Average Sales Price, Non-Foreclosure Sales: $212,877 $234,716 - 9%
Median Price, Total Residential Sales: $129,900 $152,500 - 15%
REGIONAL SALES REPORT:
NORTH:
Total Residential Sales: 32
Total Foreclosure Sales: 3
Total Non-Foreclosure: 29
Average Sales Price, Total Residential: $166,731
Average Sales Price, Total Foreclosure: $127,770
Average Sales Price, Non-Foreclosure: $170,761
SOUTH:
Total Residential Sales: 216
Total Foreclosure Sales: 54
Total Non-Foreclosure: 162
Average Sales Price, Total Residential: $245,795
Average Sales Price, Total Foreclosure: $168,113
Average Sales Price, Non-Foreclosure: $270,880
EAST:
Total Residential Sales: 176
Total Foreclosure Sales: 103
Total Non-Foreclosure: 73
Average Sales Price, Total Residential: $ 98,116
Average Sales Price, Total Foreclosure: $ 63,943
Average Sales Price, Non-Foreclosure: $146,334
WEST:
Total Residential Sales: 140
Total Foreclosure Sales: 92
Total Non-Foreclosure: 48
Average Sales Price, Total Residential: $ 69,985
Average Sales Price, Total Foreclosure: $ 32,913
Average Sales Price, Non-Foreclosure: $141,040
Realtytrac.com reports on foreclosures in December 2008
ALABAMA LOOKS GOOD COMPARED TO…A report from www.realtytrac.com on foreclosures in December 2008 shows the state of Alabama with 737 new foreclosures. This compares with our neighboring states: Georgia 10,031; Florida 50,808; Tennessee 3,884; and Mississippi 132. Nationwide 303,410 new foreclosures were reported in December 2008.
A recent study conducted for www.trulia.com and www.realtytrac.com by Harris Interactive shows that three-quarters of respondents expected a discount of at least 25% on a foreclosure purchase. In a survey conducted seven months ago, 54% of all U.S. adults surveyed said they would consider buying a foreclosed home, whereas now 47% would consider buying a foreclosure.
Some good news…nationally
NAR’s 2009 Public Awareness Campaign commercials are “on the air” in major markets focusing the message on motivating buyers to get back into the market. New TV ads, in tandem with new radio spots and print materials, explain the buyer opportunities available in many of today’s real estate markets, and convey the financial and social benefits of owning a home. Of course the messages continue to emphasize the importance of working with a Realtor®.
Housing could get a big boost from the latest addition to the stimulus bill working its way through Congress. The Senate approved a proposal earlier this week that if signed into law would allow a tax credit for home buyers of 10 percent of the value of new or existing residences, up to a $15,000 limit.
Your help is needed to see this through. We know at its core, the current economic crisis is the result of problems in our nation's housing and mortgage markets. NAR has put forth a Four-Point Plan to be included in any stimulus effort in order to boost the economy.
Housing has always lifted our economy out of past economic downturns. NAR says that immediate action is needed to foster a housing recovery that historically leads any overall economic recovery. Stabilizing real estate markets must be the center of any economic stimulus bill. You are asked to contact your elected representatives in Washington.