Submitted by David Boehmig, President
REAL Trends Housing Market Report Shows First Month-over-month Increase in Unit Sales Since 2005 as Housing Market Appears to Reach a Floor
August 13, 2009 – Denver, Colo. – For the first time in four years the number of closed unit sales was up from the same period in the prior year according to REAL Trends, signaling that a floor may have been reached in the housing market. Nationally, unit sales were up 2.8 percent in July 2009 over July 2008. The Western region again showed the greatest strength with unit sales up 12.3 percent while the Midwest region showed the greatest improvement with unit sales climbing 3.7 percent over last July.
Price declines were mixed. Nationally the average home price declined 10.4 percent, a huge improvement over the decline recorded in June 2009 of 16.5 percent. The Western region saw the biggest improvement with prices down 11.3 percent versus the decline of 26.1 percent in the prior month. The Southern region also saw improvement with home prices down only 8.7 percent versus a decline of 9.7 percent in June 2009. The Midwest remained at 10.9 percent while the Northeast continues to see softness in pricing with an average decline of 13.9 percent and increase over the decline of 10.9 percent last month.
“July 2009 is the first month in four years where unit sales increased over the same month a year ago. With June being nearly equal and July showing a small increase in unit sales there is evidence that home sales have found a floor. These results are very encouraging. While home prices continue to decline they are doing so at a slower rate than at any time in the last year, another signal that, at least for the moment, the housing market shows signs of stabilizing.,” said Steve Murray, editor of REAL Trends. “This is clearly the best month of results that we have seen since we first started publishing the REAL Trends Housing Market Report two years ago. While we know that there are substantial challenges ahead, with a predicted rise in foreclosures and continued downward pressure on prices as a result, it would appear that we are closer to the floor of this recession in housing than we have been at any time in the last four years.”
Housing Market Report
July 2009 June 2009
(Versus same month a year ago)
Closed Sales AVG Price Closed Sales AVG Price
National
+2.8% -10.4% -0.7% -16.5%
Regional Report
Northeast
-1.2% -13.9% -1.3% -10.9%
South
-1.7% -8.7% -6.5% -9.7%
Midwest
+3.7% -10.9% -1.2% -10.9%
West
+12.3% -11.3% +10.0% -26.1%
About the REAL Trends Market Report
REAL Trends’ analysis of closed home sales data is pulled from real estate brokers representing more than 35 percent of all homes sales throughout the country. The REAL Trends Housing Market Report collects actual closed housing sales data each month directly from brokerage firms. With all 50 states covered and results from thousands of brokerage firms in every metropolitan area, the sample size and geographical reach of the study exceeds virtually every other report issued about the housing market.
About REAL Trends
REAL Trends has been the leading provider of trends and research for the residential real estate service industry for the past 20 years. More than 24,000 industry CEOs, association executives, brokers and agents receive the REAL Trends newsletter each month. REAL Trends is also a leader in housing consumer research.