Monday, January 25, 2010

Prices Drop, Number of Home Sales Rise

Prices plunged more than 12 percent last year - the sharpest fall since the Great Depression. The price drop for 2009 - to a median of $173,500 - showed the housing market remains too weak to help fuel a sustained economic recovery. Total sales for 2009 were nearly 5.2 million, up about 5 percent from 2008.

However, sales are now up 21 percent from the bottom a year ago. But they're down 25 percent from the peak more than four years ago. With sales up and prices low, it will remain to be seen if prices start to rise.

There government is set to stop buy mortgage backed securities on March 31 and this has helped keep mortgage rates very low. It's anyone's guess whether the market can sustain itself after this deadline passes.

The inventory of unsold homes on the market fell about 7 percent to 3.3 million. That's a 7.2 month supply at the current sales pace, close to a healthy level of about six months. Based on my recent figures, Hoboken has about an 8 month supply of homes and downtown Jersey City has a 10 month supply. This numbers will drop in our area as the holiday months move behind us.

Information provided by:

Kevin Dowd
Prudential Castle Point Realty
203 Washington Street
Hoboken, NJ
Cell: 201-606-5957
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