–National Median Price $170,700 in Mar, +0.4% Vs Yr Ago
–NAR Chief Econ Yun: Tax Credit Has Done Its Job;Hope Momentum Lasts

By Denny Gulino and Ian McKendry

WASHINGTON (MNI) – U.S. sales of existing single-family homes, town
homes, condominiums and cooperatives jumped 6.8% in March to a 5.35
million annual rate, while inventories of unsold houses improved after a
February surge, the National Association of Realtors reported Thursday
morning.

The NAR’s Chief Economist Lawrence Yun declared he is encouraged
by three months of minimal changes in national house prices to say
prices have stabilized and that he hopes the momentum will continue,
helped by more jumbo mortgages and higher-price home sales later in the
year. He said the improved condition of the banking industry should help
restore jumbo mortgage availability in the second half.

Foreclosures, he said, are being “absorbed manageably,” yet while
inventories are improved, at a 8.0 month supply vs. February’s 8.5, that
they are still not back to normal levels. February’s overall sales level
was revised slightly downward to 5.01 million.

The total of unsold houses rose by 33,000 in March, far less
than February’s huge 300,000-plus increase, which had been the biggest
for that month in two decades.

Sales were up in all four regions, rising 6.0% in the Northeast,
7.2% in the Midwest, 7.1% in the South and 6.6% in the West.

Prices were up everywhere but in the West, where performance was
mixed between higher sales in Idaho and Utah but lower in California,
Yun said.

The national median price rose to $170,700 from February’s
revised $164,600 and was 0.4% above a year earlier. Previously January’s
national media price had been the first to advance to any degree since
August 2007.

Yun said with house prices appearing to have stabilized that
“perhaps $1 trillion in largely middle class housing wealth” is
being preserved after another $1 trillion was lost.

Sales of single family houses were up 7.3% to an annual rate
of 4.68 million in March, 13.3% above a year earlier.
Single-family median prices rose in 14 of 20 metro areas compared
to a year earlier.

All-cash sales remain at an exceptionally high proportion of the
total, at 27% as in February, with sales to investors about 19%, a
fairly normal portion.

Sales of distressed properties, both short-sale and foreclosure
related, were up to 36% vs. February’s 33%, continuing, Yun said, around
one-third of the total.

The extended $8,000 tax credit for first-time buyers and the
accompanying $6,500 move-up credit require a sales contract be signed by
April 30 and the sale be closed by June 30. Yun said, therefore, that
another two months of closings have to be recorded to see what the tax
credit accomplished. But at this point, “Its has done its job,” he said,
and the NAR is not lobbying for second extension.

The existing-home sales report for April is scheduled to be
released Monday, May 24, again at 10 a.m. ET.

** Market News International Washington Bureau: 202-371-2121 **

[TOPICS: MAUDS$,M$U$$$,M$$AG$,MT$$$$]