Sale Of Previously Occupied Homes Rose In 2010

By Author: Bruce Wills
Total Articles: 52
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Sale of previously occupied homes rose in 2010

After the winter negativity, house market showed an improvement in the month of February and according to the reports released on Monday, the number of buyers spending on previously occupied homes increased more than estimated in the month of February. Buyers are concerned of the rise in mortgage rates in the second half of the year and buyers are also motivated by the government incentives, which will end in the month.

The report released by the National Association of Realtors on Monday indicated that the seasonally adjusted value of sales agreements increased by 8.2% from the month of January to February. The index was 90.2 in the month of January and in February, the index rose to 97.6.

The trade group's Chief economist, Lawrence Yun said this indicates the early stage of the second growth in sale of homes. The index showing 100 is almost equal to the sale of homes in the year 2001, although, economists predicted the index would be around 90.3.The index also indicates optimistic future sale activities as the sale of homes takes place in one or two months ...
... of signing the agreements.

The sale of homes in U.S. in the month of December and January were affected by the changes in deadline. As the deadline to qualify for tax credit was extended many buyers changed their plans to buy homes. The tax credit benefit was availed by first time home buyers and it helped in increasing the month-to-month pending sale of homes. The pending sale rose by 22% in Midwest in month-to-month index and sales rose by 9% in Northeast and southern regions, whereas, in the West the sale of pending homes reduced by 5%.

Analysts are waiting for the second quarter result of 2010 to see the effect on housing market as the government support ends. A report released by the National Association of Realtors (NAR) showed comparative analysis of the residential investments of the years 2008 and 2009.

Investment on residential property

The report indicates that the investors did not spend much on residential investment property in the year 2009, although the housing market condition of the year 2009 was one of the best times to invest in properties in terms of the low rates.

Sale of investment homes

The report released by NAR also showed that the sale of investment home lowered by 15.9 % in year-to-year comparison with previous year. In 2008, the sale of investment residential home was 1.12 million and in the year 2009, the sale reduced to 940,000, whereas, the number of primary residence sale increased by 7.1% in the year 2009 as compared to the year 2008.

Primary residence sale

The primary residence sale was 3.77 million in 2008 and in 2009 the primary residence sale was up to 4.04 million.

Median investment property

The indexes for median investment property lowered in the year 2009 as compared to 2008 by 2.8 % from $108,000 to $105,000. In 2009, investment in properties reduced from 21% to 17% in 2008. The reports of NAR shows the investments sales in 2009 in West increased and in California, all cash purchase increased in 2009 for low cost properties.

Investment sale distribution

The investment sales distribution was mostly dependent on the population distribution of the region .Investment sales was 35% in South and 25% in West .In Midwest, investment sales was 24% and in Northeast it was 16%.

Total investment homes

In 2009, most of the investors were cash buyers and in 2009, one in four investors, invested in more than one property. The NAR report of the year shows that in U.S., the total numbers of investment homes are 41.1 million and owner occupied homes are 75.0 million.

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