Existing-home sales jump 13% in West, 9.4% nationwide

For Immediate Release On: 10/23/2009

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Denver Business Journal at

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First-time homebuyers helped drive up existing home sales nationwide -- and especially in the western states, including Colorado -- according to the latest figures from the National Association of Realtors.

Sales of existing homes jumped 9.4 percent, to a seasonally adjusted rate of 5.57 million units in September from 5.1 million units in August. Sales activity is at its highest level in more than two years, according to NAR figures.

Cheaper homes, coupled with the first-time homebuyer credit, are behind the increase, NAR chief economist Lawrence Yun said.

“We are hopeful the tax credit will be extended, and possibly expanded, to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery,” he said in a news release.

Still, he noted, there still needs to be a steady stream of qualified buyers to bring inventories down and create price stabilization.

Total housing inventory at the end of September fell 7.5 percent to 3.63 million existing homes available for sale. That represents a 7.8-month supply at the current sales pace, down from a 9.3-month supply in August. Unsold inventory totals are 15 percent below a year ago, according to NAR.

“The current housing supply is the lowest we’ve seen in 2-1/2 years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.

In the West, including Colorado, existing-home sales jumped 13 percent to an annual level of 1.3 million in September -- 5.7 percent higher than a year ago.

The median price in the West was $219,000, 15 percent below September 2008.

Nationwide, the median existing single-family home price was $174,900 in September, 8.1 percent lower than a year ago.

About Trenka & Associates: Trenka & Associates is one of Downtown Denver's leading Real Estate Companies. http://www.condosandlofts.com

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