November Homes Sales Increase 100% Over 2008

But then again...November '08 home sales were the lowest (269) in a very long time.

Total homes sold in November were 533; up 98% compared to last year. What a difference 12 months and a Home Buyer Tax Credit makes!

Typically sales in November lessen as the year nears end. Over the last 4 years the average change in sales from October to November is -9%. (This excludes last year's 36% plunge.)

November '09 sales were 9% down from October. Consistent with what we would expect. Pending sales in November were 649.

First time home buyers continue to drive our market. The announcement of the Tax Credit extension and its expansion to include current homeowners should enable us to continue to move in the positive direction. 44% of homes sold in November were <$160,000.

The fundamental demand for housing is driven by jobs. What happens in our employment market will determine how long this modest recovery can continue. Anecdotally...there are signs that some Valley employers are getting stronger. Mandatory overtime, longer hours, reinstatement of pay cuts...all are happening now.

Median home price nudged up 1% from October to $159,700. Existing homes continue to hold their value relatively well. New homes median reversed its downward slide as it increased from $147,390 in October '09 to $149,900 in November.

Inventory has dropped under 3,000 homes for the first time since May of '06. We now have less than 5 months of inventory (existing and new) in our most demanded price category. Likely this is supporting the tenuous grip median sales price is holding to.

Market pace increased in November as days on market fell to 76.

On the less positive side...as you saw in the Statesman yesterday, distressed properties continue to hurt our friends and family. Among all active listings, 46% are either short sales, in foreclosure or REO's. 37% of all November sales were also distressed. Although this less than the 45% we were experiencing last March, it is too high.

Our community offers resources to help families in housing crisis that we sometimes overlook. Neighborhood Housing Service's Foreclosure Prevention Counseling program continues to have a greater than 90% rate of success in helping our neighbors avoid foreclosure. Its completely free to homeowners. Click here for more information and an intake package that must be completed before counseling can begin.

What I'm hearing about December is good. Buyer interest, offer presentations and closings are all up. The key is going to be how supportive our lender partners will be.

Yesterday President Obama chided the banks for poor results in assisting in our recovery...comparing them to "overpaid ball players who've had a bad season". “Given the difficulty that businesspeople are having as lending has declined, and given the exceptional assistance banks received to get them through a difficult time, we expect them to explore every responsible way to help get our economy moving again.”