Positive Home Sales numbers bode well for all of us
Did you see the news on Friday from the National Association of Realtors that home sales rose in all areas of the US to the tune of 9.4% in September. For those of us who watch the housing market, work in the housing sector, or just own a home, keep in mind that we all are in this together. And Friday’s announcement is great news for the long and slow recovery that the housing market will go through.
Sure many economists are saying that the numbers are boosted by low prices brought on by a substantial inventory of foreclosure and bank owned houses as well as the $8,000 Home Buyer Tax credit scheduled to expire November 30th. That’s absolutely fine with me. Food items sell better at our local grocery store when manufacturers provide coupons and discounts on their products so you and I will buy more so why not stimulate home sales with a tax credit. Me personally, I am ok with anything (within reason) that needs to be done either by the government or the private sector to stimulate home sales in neighborhoods across the country. I know realtors everywhere will appreciate that plug for their business.
The higher sales pace in September boosted sales in all price ranges though most sales were concentrated in the under $200,000 range. According to the Wall Street Journal, inventory of unsold homes was reduced 7.5% to a 2 year low at 3.63 million homes thus reducing the nations housing supply to 7.8 months from 9.3 months in August assuming the current sales paces remains on track.
The real estate industry along with home builders are pushing hard to extend the credit arguing that the market still is fragile enough that it still needs the boost that the tax credit brings. For those like us who watch the housing sector closely these next several weeks until the end of November will be good theater in Washington as lawmakers decide how important it is for the recovery of the US economy to prop up and continue to support the fragile US housing market.
