Home Inventories Plummet, Foreshadowing Higher Prices By Spring 2010

Existing Home Sales Nov 2008-Nov 2009Home resales are soaring.

For the 4th consecutive month, the Existing Home Sales report revealed what today’s buyers and sellers already know — there’s a lot of buyer activity in Englewood right now.

Existing Home Sales surged 7-plus percent in November, posting its largest number of recorded sales in 33 months.  Sales volume is up 44% higher versus last year.

It’s another example of the housing market in recovery.

There were other interesting statistics buried in the November data, too.  According to the National Association of Realtors:

  1. 51 percent of home buyers were first-timers
  2. Distressed properties accounted for one-third of all sales
  3. The median home sale price rose slightly

But of all the stats from the November Existing Home Sales report, perhaps the most important one is the one showing home supplies falling to 6.5 months. It’s nearly half of the home supply available last November.

The rapid run-off of inventory throughout 2009 is more than a trend at this point and suggests higher home valuations in 2010. Especially because mortgage rates are low, tax credits are available, and the press is giving housing positive coverage.

You shouldn’t feel rushed to buy, but you probably don’t wait too long, either.  The best deals of 2010 may be gone before that Spring Buying Season even starts.