Existing-Home Sales Rise on Home Buyer Tax Credit and Favorable Market Conditions

WASHINGTON, DC, Apr 22 (MARKET WIRE) --
Buyers responding to the homebuyer tax credit and favorable affordability
conditions boosted existing-home sales in March, marking the beginning of
an expected spring surge, according to the National Association of
Realtors(R).

Existing-home sales(1), which are completed transactions that include
single-family, townhomes, condominiums and co-ops, rose 6.8 percent to a
seasonally adjusted annual rate of 5.35 million units in March from 5.01
million in February, and are 16.1 percent above the 4.61 million-unit
level in March 2009.

Lawrence Yun, NAR chief economist, said it is encouraging to see a broad
home sales recovery in nearly every part of the country, with two
important underlying trends. "Sales have been above year-ago levels for
nine straight months, and inventory has trended down from year-ago levels
for 20 months running," he said. "The home buyer tax credit has been a
resounding success as these underlying trends point to a broad
stabilization in home prices. This is preserving perhaps $1 trillion in
largely middle class housing wealth that may have been wiped out without
the housing stimulus measure."

Total housing inventory at the end of March rose 1.5 percent to 3.58
million existing homes available for sale, which represents an 8.0-month
supply(2) at the current sales pace, down from an 8.5-month supply in
February. Raw unsold inventory is 1.8 percent below a year ago, and is
21.7 percent below the record of 4.58 million in July 2008.

"Foreclosures have been feeding into the inventory pipeline at a fairly
steady pace and are being absorbed manageably," Yun said. "In fact,
foreclosures are selling quickly, especially in the lower price ranges
that are attractive to first-time home buyers."

A parallel NAR practitioner survey(3) shows first-time buyers purchased
44 percent of homes in March, up from 42 percent in February. Investors
accounted for 19 percent of transactions in March, unchanged from
February; the remaining sales were to repeat buyers. All-cash sales
remain elevated at 27 percent in March, the same as in February.

The national median existing-home price(4) for all housing types was
$170,700 in March, up 0.4 percent from March 2009. Distressed homes,
typically sold at a 15 percent discount, accounted for 35 percent of
sales last month -- unchanged from February.

"With home values stabilizing, a revival in home buying confidence will
likely help the housing market get back on its feet even as the tax
credit impact disappears," Yun said.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in
Tucson, Ariz., said buying conditions are in near-perfect alignment.
"Even with tougher loan standards, historically low mortgage interest
rates with affordable prices and a sense that the market is turning have
created optimal conditions in much of the country," she said.

"With the fast approaching April 30 deadline to get a contract in place
for the tax credit, Realtors(R) are working harder than ever to negotiate
transactions, arrange services and complete paperwork," Golder said.
"Because many repeat buyers need to sell their current home first, many
will be purchasing later without the tax credit but now have the benefit
of a more buoyant housing market."

According to Freddie Mac, the national average commitment rate for a
30-year, conventional, fixed-rate mortgage dipped to 4.97 percent in
March from 4.99 percent in February; the rate was 5.00 percent in March
2009.

Single-family home sales rose 7.3 percent to a seasonally adjusted annual
rate of 4.68 million in March from a level of 4.36 million in February,
and are 13.3 percent above the 4.13 million level a year ago. The median
existing single-family home price was $170,700 in March, up 0.6 percent
from March 2009.

Single-family median prices rose in 14 out of 20 metropolitan statistical
areas reported in March in comparison with a year earlier. Five metro
areas experienced double-digit increases, including San Diego, St. Louis
and Boston.

Existing condominium and co-op sales increased 3.1 percent to a
seasonally adjusted annual rate of 670,000 in March from 650,000 in
February, and are 39.3 percent higher than the 481,000-unit level in
March 2009. The median existing condo price(5) was $170,600 in March,
which is 0.7 percent below a year ago.

Regionally, existing-home sales in the Northeast increased 6.0 percent to
an annual level of 890,000 in March and are 25.4 percent higher than a
year ago. The median price in the Northeast was $249,800, up 8.9 percent
from March 2009.

Existing-home sales in the Midwest rose 7.2 percent in March to a pace of
1.19 million and are 15.5 percent above March 2009. The median price in
the Midwest was $139,300, up 0.2 percent from a year ago.

In the South, existing-home sales increased 7.1 percent to an annual
level of 1.97 million in March and are 13.9 percent higher than a year
ago. The median price in the South was $154,800, up 5.2 percent from
March 2009.

Existing-home sales in the West rose 6.6 percent to an annual rate of
1.30 million in March and are 14.0 percent above March 2009. The median
price in the West was $209,400, down 7.9 percent from a year ago.

The National Association of Realtors(R), "The Voice for Real Estate," is
America's largest trade association, representing 1.2 million members
involved in all aspects of the residential and commercial real estate
industries.

NOTE: NAR also reports monthly comparisons of existing single-family home
sales and median prices for 20 select metropolitan statistical areas,
which is posted with other tables at:
www.realtor.org/research/research/ehsdata. For information on areas not
included in the report, please contact the local association of
Realtors(R).

(1) Existing-home sales, which include single-family, townhomes,
condominiums and co-ops, are based on transaction closings. This differs
from the U.S. Census Bureau's series on new single-family home sales,
which are based on contracts or the acceptance of a deposit. Because of
these differences, it is not uncommon for each series to move in
different directions in the same month. In addition, existing-home sales,
which generally account for 85 to 90 percent of total home sales, are
based on a much larger sample -- more than 40 percent of multiple listing
service data each month -- and typically are not subject to large
prior-month revisions.

The annual rate for a particular month represents what the total number
of actual sales for a year would be if the relative pace for that month
were maintained for 12 consecutive months. Seasonally adjusted annual
rates are used in reporting monthly data to factor out seasonal
variations in resale activity. For example, home sales volume is normally
higher in the summer than in the winter, primarily because of differences
in the weather and family buying patterns. However, seasonal factors
cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data
collection began quarterly in 1981; the series were combined in 1999 when
monthly collection of condo data began. Prior to this period,
single-family homes accounted for more than nine out of 10 purchases.
Historic comparisons for total home sales prior to 1999 are based on
monthly single-family sales, combined with the corresponding quarterly
sales rate for condos.

(2) Total inventory and month's supply data are available back through
1999, while single-family inventory and month's supply are available back
to 1982 (prior to 1999, condos were measured quarterly while
single-family sales accounted for more than 90 percent of transactions).

(3) First-time buyer and distressed sales data are from the Realtor(R)
Confidence Index.

(4) The only valid comparisons for median prices are with the same period
a year earlier due to the seasonality in buying patterns. Month-to-month
comparisons do not compensate for seasonal changes, especially for the
timing of family buying patterns. Changes in the composition of sales can
distort median price data. Year-ago median and mean prices sometimes are
revised in an automated process if more data is received than was
originally reported.

(5) Because there is a concentration of condos in high-cost metro areas,
the national median condo price generally is higher than the median
single-family price. In a given market area, condos typically cost less
than single-family homes.

Existing-home sales for April will be released May 24. The next Pending
Home Sales Index is scheduled for May 4; release times are 10 a.m. EDT.

Information about NAR is available at www.realtor.org. This and other
news releases are posted in the News Media section. Statistical data in
this release, other tables and surveys also may be found by clicking on
Research.

REALTOR(R) is a registered collective membership mark which may be used
only by real estate professionals who are members of the NATIONAL
ASSOCIATION OF REALTORS(R) and subscribe to its strict Code of Ethics.
Not all real estate agents are REALTORS(R). All REALTORS(R) are members
of NAR.

For further information contact:
Walter Molony, 202/383-1177
wmolony@realtors.org

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