The Recession is Over!

August 26, 2009 by  
Filed under Real Estate

Granted those may be the words you are wanting to hear, but unfortunately it is not true – yet.  In a bit of bright news, it was recently reported by the National Association of REALTORs (NAR), that for the first time in 5 years, sales of existing homes have increased for 4 months consecutively.  For you number crunchers wondering just exactly how much:  it was a 7.2% increase to 5.24 million units, up from 4.89 million units the previous month.

And that’s not the only bit of good news.  This monthly increase was also the single largest on record within the past decade.

So, while the end of the recession may not be over, it does indicate that there may be at least a light at the end of the tunnel for a lot of concerned persons that own real estate across the country.  Some of the experts are attributing the increase in home sales to the First Time Home Buyer Tax Credit and that the increase is a demonstration of its success. (The First Time Home Buyer Tax Credit allows persons that qualify, up to an $8,000 tax credit when they purchase a home.)

That makes everything just peachy, right?  Well, it must also be noted that the total number of available homes for sale, also increased 7.3% to 4.09 million units.  Still, its not all pits.  There was a net reduction in inventory – which is a very good thing for most areas.

If you look at the various markets across the country, the big gains came from the Northeast.  The Northeast was #1 with an increase of 13.4% (which is 3.3% above July 2008 figures).  The #2 slot went to the Midwest which posted a 10.9% increase in sales (which is 8% higher than it was a year ago).  The #3 position went to the South which showed an increase of 7.1% (which is 5.4% higher than a year ago).  And lastly was the West which lagged behind with an increase of 1.7% – at least it was a positive (which was 1.8% higher than it was last year at this time).

Many experts are predicting (read: hoping) that this positive trend of home sales will continue.  As the number of homes for sale begins to decrease within their respective markets, its probable that prices will start moving upward as well.  For those persons that have been “waiting for prices to hit bottom”, you may be nearing (or even past) the end.