January 29, 2009

Are Better Times Ahead? Homes Sales Take a Surprising Jump in December

Posted to Steve Randall

The National Association of REALTORS® released a report showing the seasonally adjusted annual rate of 4.74 million units sold in December. This increase contrasts with the 9.4% decrease in unit sales in November. Does this mean there is life in real estate again?

There has always been life in real estate if you know where to look… and especially if you are able to buy now! Sellers still face the fact that home sales overall are still down 3.5% when compared with last year. Inventories are still high, meaning supply exceeds demand, continuing a downward pressure on the listing prices.

This glimmer of hope is also fueled by the fact that inventories in some areas of the country were down when compared with last year’s numbers. Denver saw a 20.3% decrease in inventory, Phoenix a 1.3% decrease, and Las Vegas saw a slight increase in their housing inventory.

Tomorrow we will look at Utah and in particular Davis and Weber Counties to see how we fit into the national trends. Real Estate is always local and these local numbers will interest you more than the national statistics.

Despite declines in home prices, investors are still receiving rents higher than last year and many, if not most are enjoying a 6%-8% cash on cash return on their investment properties.

Posted By: Steve Randall


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