Existing Home Sales Continue to Make Gains in the Northeast

First time homebuyers responding to the federal tax credit continue to drive sales of existing homes nationally and in the northeast.  Figures released by the National Association of Realtors showed November 2009 sales of existing homes up 53%.  The median price in the northeast was $223,400, down 13.1% from the same period last year. Inventory fells to a 6.5 month supply of homes.

 Lawrence Yun, NAR chief economist, said the rise was expected. “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” he said. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.88 percent in November from 4.95 percent in October; the rate was 6.09 percent in November 2008. Last month’s mortgage interest rate was the second lowest on record after bottoming at 4.81 percent in April 2009.

If you agree that lower prices, low interest rates, tax credits and a stabilizing supply of homes make this a good time to buy your new home in the Andover area start your home search here.