With record low mortgage interest rates and bargain home prices, NAR's housing affordability index shows that a median-income family can easily afford a median-priced home.
Austin, TX (PRWEB) December 21, 2011
The NAR has just released the November Existing-Home Sales figures which Homes.org has analyzed for its readers, outlining the key findings as well as discussing what buyers and sellers can likely expect in the months to come based upon the market performance in November.
Overall, the November Existing-Home Sales figures, which include single-family homes, condos and townhomes, signify positive trends in the final quarter of 2011 with existing home sales continuing to surpass both last month and November of last year.
Key Findings November 2011 Home Sales Include:
- 4.42 million homes sold in November
- 4% increase in home sales compared to October of this year
- 12.2% increase in home sales compared to November 2010
- Median existing home price is at $164,200 for all types of homes
- Foreclosures and short sales account for 29% of November home sales
- 35% of home buyers were first-time buyers
- 19% of home buyers were investors
- 28% were all cash sales
Regions across the country all saw an increase in existing-home sales in November 2011, while at the same time median prices fell. The Northeast saw the largest increase in sales of 9.8%, followed by the Midwest at 4.3%, the West with 3.6% and the South region with 2.4%.
Top Factors for the Improvement in Home Sales
- Buyer's market conditions
- Housing affordability conditions at record highs
- Record low interest rates
Several factors are influencing the improvement in home sales. Of those listed above, housing affordability is standing out as the biggest variance from last year. Moe Veissi, the President of NAR and broker-owner of Veissi & Associates, Inc. said, "With record low mortgage interest rates and bargain home prices, NAR's housing affordability index shows that a median-income family can easily afford a median-priced home."
Still the tight lending conditions are affecting home sales just as it did last month. Veissi explained, "the problem remains that some financially qualified families who are willing to stay well within their means are being denied the opportunity to buy in today’s market by the overly restrictive mortgage underwriting situation." In November 2011 33% of NAR members reported contract failures. This is unchanged from last month, however it is a significant increase from the same time last year when the contract failure rate was just 9%.
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