Week of February 9, 2009
For the week ending January 31, new listings continue at a lower level than seen last year, clocking in at 1,635—a 15.3 percent drop. Conversely, pending sales continue to raise sand with 673 recorded for this week’s report—25 percent above last year. Basically, this is all welcome news. Having fewer listings on the market, combined with an increase in pending sales, helps to reduce the Months Supply of Inventory to 13.5 percent when compared to last year at this time—down from 8.9 to 7.7 months. This means it will take the current supply of houses for sale 7.7 months to sell (on average). The Percent of Original List Price Received at Sale continues to fall, with the January figure of 89.5 sitting at 1.6 percent less than 2008. It’s important to consider sales prices of foreclosure homes and how they affect this figure. Our new Housing Affordability Index jumped to 202 in February. This is a new record and means that the median family income is 202 percent of what is necessary to qualify for the median-priced home. Again, we must consider how the sales prices in the lender-mediated market are affecting this figure, but we can say with some confidence that there are a number of very attractive buying opportunities in the local housing market. If we are able to maintain these trends, we’ll be well on our way to killing the blues. And to this current market malaise, we’ll be singing “gone, gone, gone (done moved on).”
Stimulus Update for the housing market:
Weekly Update to Federal Political Coordinators An Economic Stimulus Plan Update The Economic Stimulus Bill (The American Recovery and Reinvestment Act of 2009, H.R. 1.) has been reconciled by the House and Senate. The details of the legislation are now being reviewed by House and Senate offices, as well as NAR staff experts. Congress will likely pass the package in the next 24 hours. We expect the legislation to include a number of important housing provisions, including the remedies for the housing crisis that NAR has been pushing. Homebuyer Tax Credit – an $8000 tax credit that will be available for qualified purchase of a principal residence by a first time homebuyer between January 1, 2009 and December 1, 2009. The credit does not require repayment. Individuals who purchase in 2009 using financing assistance from state and local mortgage bonds will be permitted to use the credit as well. FHA, Fannie and Freddie Loan Limits – Revised loan limits for FHA, Freddie Mac, and Fannie Mae. Reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the HUD Secretary. Foreclosure Mitigation & Neighborhood Stabilization – Funding for states and local communities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. President Obama has indicated he expects a final bill on his desk for signing on Monday, Feb. 16. To see all the information on the stimulus plan, please visit REALTOR.org: http://www.realtor.org/government_affairs/gapublic/gses_conservatorship. Any questions about the tax implications of the plan can be directed to Linda Goold at lgoold@realtors.org. Questions about the stimulus plan in general can be directed to Tony Hutchinson at thutchinson@realtors.org.
