Here is a RISMEDIA update on the status of our residential real estate market:

RISMEDIA, October 26, 2009—Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors®. Existing-home sales–including single-family, townhomes, condominiums and co-ops–jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2% higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007. 

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.” 

Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet,” he said. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.” 

Early information from a large annual consumer study to be released November 13, the 2009 National Association of Realtors® Profile “Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970, but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market,” of Home Buyers and Sellers, shows that first-time home buyers accounted for more than 45% of home sales during the past year. A separate practitioner survey shows that distressed homes accounted for 29% of transactions in September. 

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said affordability conditions remain historically high. he said. “Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average,” McMillan said. 

Total housing inventory at the end of September fell 7.5% to 3.63 million existing homes available for sale, which represents an 7.8-month supply at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0% below a year ago. 

“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year. 

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06% in September from 5.19% in August; the rate was 6.04% in September 2008. The national median existing-home price for all housing types was $174,900 in September, which is 8.5% lower than September 2008. Distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area. 

Single-family home sales rose 9.4% to a seasonally adjusted annual rate of 4.89 million in September from a pace of 4.47 million in August, and are 7.7% above the 4.54 million-unit level in September 2008. The median existing single-family home price was $174,900 in September, which is 8.1% below a year ago. Existing condominium and co-op sales jumped 9.7% to a seasonally adjusted annual rate of 680,000 units in September from 620,000 in August, and are 9.7% above the 561,000-unit pace a year ago. The median existing condo price was $175,100 in September, down 11.7% from September 2008. 

Northeast
Regionally, existing-home sales in the Northeast increased 4.4% to an annual level of 950,000 in September, and are 11.8% higher than September 2008. The median price in the Northeast was $234,700, down 7.0% from a year ago. 

Midwest
Existing-home sales in the Midwest jumped 9.6% in September to a pace of 1.25 million and are 7.8% above a year ago. The median price in the Midwest was $147,600, which is 1.0% below September 2008. 

South
In the South, existing-home sales rose 9.0% to an annual level of 2.06 million in September and are 10.8% higher than September 2008. The median price in the South was $153,500, down 7.6% from a year ago. 

West
Existing-home sales in the West surged 13.0% to an annual rate of 1.30 million in September and are 5.7% above a year ago. The median price in the West was $219,000, which is 15.0% below September 2008. 
Read more: http://rismedia.com/2009-10-25/big-rebound-in-existing-home-sales-shows-first-time-buyer-momentum/#ixzz0VWFJxjbN

REALTORS® are licensed professionals and real estate is what they do everyday. REALTORS® subscribe to a stringent code of ethics and standards. Most people buy and sell only a few homes in a lifetime. Even if you’ve done it before, laws and regulations change (and vary by state); that’s why having a professional REALTOR® on your side is critical.

Call us if we can help you with your home search or to assist you in finding a Buyers’ Agent.

Jim Norbuta, Realtor®
Accredited Buyers’ Representative (ABR) website:http://www.findingclevelandhomes.com

RE/MAX TRADITIONS
RE/MAX RELOCATION
OUR PEOPLE MAKE A DIFFERENCE ONE MOVE AT A TIME ®Serving the Greater Cleveland communites of Aurora, Auburn, Bainbridge Township, Chagrin Falls, Solon, Twinsburg, and all of the Chagrin Valley. Call us for referrals to outstanding RE/MAX agents in other communities.YourClevelandRealtors.com website contains information on mortgage rates, lenders, and local community groups. Our services are designed for Executive Relocation & Luxury Home Market and are provided to all of our clients

(The following is specific to one area of Greater Cleveland.  If you are a home buyer or home seller, and especially if relocation is the reason for your move, this detail is extremely important to you.  Please do not make financial decisions without knowing the facts about your community. If you are buying or selling a home, this same type of analysis will be done for your community/neighborhood. )

44022     CHAGRIN FALLS      44023

INVENTORY REPORT FOR July 30, 2009

Price Range                  Active&Contingent     Pending& Sold        Current Inventory

$150,000 – $300,000         185                              90              12 months/last month 15

$300,001 – $500,000        178                              65               16 months/last month 20

$500,001 +                      178                             34             31 months/last month 51

….TOTALS……..                     541                            189

Total Homes for Sale                 541

Average Sales/Month                 31.5

Months of Inventory                 17

This past month reflects tremendous improvement in the sale of homes in CHAGRIN FALLS.  The same is likely to be true for Solon, Twinsburg, Aurora, and Russell.  If you need to know this information for your specific area,  for developments like Laurel Springs, Barrington, and Canyon Lakes, give us a call.  The above numbers may be eye openers for many of you.  If you are currently selling your home, you may not be aware of these recent changes.  Most importantly, ALL BUYERS AND SELLERS should be aware of them for your street, neighborhood, and community.  The numbers can change dramatically by location, even within your local community.

If you are looking to purchase a home in the next few months, please give us a call.  We are in our show all properties listed by any real estate broker and most for sale by owner homes.  Most importantly, our purchase analysis for buyers includes the street, neighborhood, and the local community facts.

If your interest is in homes priced above $500,000, the above chart indicates an inventory of 31 months, a dramatic improvement of 48 months  just 30 days ago.  If you are ready to negotiate, there are still excellent values available in every price range.

For families and individuals involved in a relocation transfer, you’re timing is excellant.  The Greater Cleveland Community has so much to offer and is one of the most affordable major metropolitan areas in the country.

YouClevelandRealtor.com website contains information on mortgage rates, lenders,and  local community groups.  Our services are designed for Executive Relocation & Luxury Home Market and are provided to all of our clients.

Jim & Joan Norbuta

Realtor
RE/MAX TRADITIONS
RE/MAX RELOCATION
OUR PEOPLE MAKE A DIFFERENCE ONE MOVE AT A TIME ®

Serving the communites of Aurora, Auburn, Bainbridge Township, Chagrin Falls, Solon, Twinsburg, and all of the Chagrin Valley.  Call us for referrals to outstanding RE/MAX agents in other communities.

Also, visit our post, Signs that the Market has Turned:  http://www.findingclevelandhomes.com/2009/07/14/signs-that-the-real-estate-market-has-turned%e2%80%a6/

In case you haven’t heard, a bill has been introduced in Congress to increase the stimulus for the residentail real estate market.  In it’s currrent form, the incentive is for all home buyers and does not have income limitations.  This means that everyone can benefit from this plan…even if you stay where you are.

Should this bill pass before Congress adjourns in August, will you be among the “movers and shakers?” 

Can you think of anything else that would create more jobs?

Your response is important to us….

Jim & Joan Norbuta

Realtor

RE/MAX TRADITIONS

Serving the communites of Aurora, Auburn, Bainbridge Township, Chagrin Falls, Solon, Twinsburg, and all of the Chagrin Valley.  Call us for referrals to outstanding RE/MAX agents in other communities.