 Charts as published in the NY Times The National Association of Realtors® released its data for existing-home sales for April today. I reported April existing home sales in Flagstaff earlier this month in my Monthly Flagstaff Real Estate Market post and in a special focus on Flagstaff Single Family Home Sales in April. NAR reported that national composite home sales rose 7.6% in April compared with March and, more astonishingly, they rose 22.8% as compared with April 2009. The national median existing-home price for all housing types was $173,100 in April, up just 4.0 percent from April 2009 inspite of this surge in demand.
NAR and most everyone else believe that April’s home buyers were motivated by the tax credit, but NAR says improving consumer confidence and favorable affordability conditions (low prices and low interest rates) also were factors. The tax credit motivated sales will continue to affect home sales reports in May and June. To obtain the credit, homebuyers needed to be in contract by the end of April, but they have until the end of June to close the sale.
Lawrence Yun, NAR chief economist, said “… no doubt there will be some temporary fallback in the months immediately after [the tax credit] expires.” Steven Ricchiuto, chief economist for Mizuho Securities USA, cautioned: "Because of the distortions created by the home-buyer credit, reading too much into this report about the health of the economy would be a mistake.” No one buys a home just because of the tax credit, but they may time the purchase to take advantage of the credit. Most economists believe the tax credit pulled forward sales that would have taken place later.
Meanwhile, total housing inventory rose 11.5 percent from March. At the end of April, nationally there was an 8.4-month supply of existing homes at the current sales pace, up from an 8.1-month supply in March. Unsold inventory is 2.7 percent above a year ago, but remains 11.6 percent below the record of 4.58 million in July 2008. Flagstaff housing inventory is much higher than the national composite – as of the beginning of May, there was a 13.25 months’ supply of Flagstaff single family homes. Six months' supply is considered a "balanced" market -- we remain in a "buyers' market."
All real estate markets are local. NAR’s report on regional differences highlights this fundamental rule. While existing-home sales rose in the other four regions tracked by NAR, existing-home sales in the West fell 6.2 percent. Make sure you have a local expert who knows the real estate market conditions in the area where you want to buy or sell!
To buy or sell any Flagstaff home, please contact me: Ann Heitland at RE/MAX Peak Properties.
To search the Flagstaff MLS, click here!
Click here to see my featured Flagstaff home listings. | 
-->
Email to a Friend
