February sales came in stronger than expected. With total units sold at 345, February ’09 finished 27% ahead of February ’08.
This extends our string of consecutive year-over-year sales to nine. We are much closer to the ’08 sales pace (360) than ’09.
Increases in sales of new homes jumped by almost 70% in February compared to January.
Looking at month-over-month…February sales were 22% over January.
Pending homes sales suggest continued improvement to come. Pending sales in February were 928; compared to January’s 766, this is a 21% increase.
Median price dipped from $168,995 to $165,000; a 9% decrease. Compared to February ’08 median of $183,500 we are down 11%. Not all that surprising as our distressed properties represented 55% of total sales in February.
Inventory increased from 3554 in January to 3683 in February; second month in a row of increase, after falling for the previous two straight years. This is also likely a result, at least in part, on the increase in REO properties currently available. However, with that said, there are builders in the Valley bringing more houses on-line…at very attractive price points…to be ready for our traditional Spring selling season.
The number of houses in the <$160,000 price category nudged up from 1500 in January to 1550 in February.
First-time buyers are still the strongest influence on our recovery. Sales of homes <$160,000 increased from 133 in January to 173 in February; an increase of 30%.
Months of available inventory increased to 10.9 overall; 10.5 for existing homes and 14 for new construction.
Distressed properties continue to cause all of us the most worry. IN February 50% of our inventory was distressed and 55% of all sales were the same. The only good news is that the number of pendings that are distressed actually went down in February.
As many of you know, I Chair the Housing Solutions Committee for Neighborhood Housing Services (NHS). Our most successful program is Foreclosure Prevention Counseling. In February 187 of our friends asked for help in keeping their homes. This is the highest number we’ve ever recorded.
We are awaiting (hopefully) the launch of Fannie Mae’s Expedited Short Sales process and Treasury’s Home Affordable Foreclosure Alternatives Will these two programs stem the tide…probably not completely, but any and everything that we can do, we must do…
Currently the Expedited Short Sale process is being tested in Phoenix, Detroit and Orlando. We have contacted Fannie Mae to see if we can launch another test site here in the Valley….we’ll keep you posted.
With the “Mild-to-No” Winter of 09 seemingly behind us, and the expiration of the tax credit bearing down on us, perhaps March will get our spring sales season started like a lion.
Marc Lebowitz, RCE, CAE
Executive Officer
Ada County Association of REALTORS®