THE GOOD NEWS

According to the National Association of Realtors:

·        Existing home sales increased 2.7% nationally

·        This is the first time in 7 months that sales activity was higher than a year earlier

·        Chief Economist Lawrence Yun says

o   Home sales uptrend is consistent with improvements in the economy and jobs

o   Consumer confidence is boosting

o   Affordability conditions are a big factor

o   Tight credit has resulted in high levels of all-cash purchases primarily for distressed homes sold at deep discounts – which pulls the median price downward but traditional homes in good condition have held their value

o   Investor activity is another factor re purchasing undervalued homes

·        In January, first time buyers bought 29% of homes sold

·        Investors bought 23% of purchases in January

·        Housing inventory is at a 7.6 month supply, lowest level since 12/2009

·        Existing-home sales increased 3.6% in the South

NAR is America’s largest real estate trade association, representing 1.1MM members involved in all aspects of the residential and commercial real estate industries.