Sales of existing homes rose in September, according to the National Association of Realtors, which credits the climb to buyers’ response to improved housing affordability conditions.

Existing-home sales – which includes single-family, town homes, condominiums and co-ops – rose 5.5 percent to a seasonally adjusted annual rate of 5.18 million units last month from 4.91 million in August. That is also an increase of 1.4 percent over the 5.11 million-unit pace in September 2007.

“This is the first time since November 2005 that home sales have been above year-ago levels,” said NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif.

Total housing inventory at the end of September fell 1.6 percent to 4.27 million existing homes available for sale, which represents a 9.9-month supply at the current sales pace, which is down from a 10.6-month supply in August, NAR reported.  This marks two consecutive monthly declines since inventories peaked in July.

The national median existing-home price for all housing types was $191,600 in September, a drop of 9.0 percent from a year ago when the median was $210,500.

Single-family home sales increased 6.2 percent to a seasonally adjusted annual rate of 4.62 million in September from August’s 4.35 million. The median existing single-family home price was $190,600 last month, which is 8.6 percent below September 2007.

Existing condominium and co-op sales were unchanged at a seasonally adjusted annual rate of 560,000 units in September.  The median existing condo price was $199,400 in September, down 10.2 percent from a year ago.

Regionally, existing-home sales in the Midwest  increased 4.4 percent to an annual pace of 1.19 million in September, but that is 2.5 percent below a year ago. The median price in the Midwest was $152,500, which is 7.9 percent lower than September 2007.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.04 percent in September from 6.48 percent in August.

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Sales of existing homes rose in the Midwest in August but were down across the nation after a healthy gain in July because of tight mortgage credit, according to the National Association of Realtors. Sales also rose in the South but fell in the Northeast and West.Nationally, sales of existing homes, which  includes single-family, town homes, condominiums and co-ops, dropped 2.2 percent to a seasonally adjusted annual rate of 4.91 million units in August from an upwardly revised rate of 5.02 million in July. That is 10.7 percent below the 5.50 million-unit pace of August 2007.

According to figures from Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.48 percent in August from 6.43 percent in July; the rate was 6.57 percent in August 2007. However, by mid-September, the 30-year fixed had dropped to 5.78 percent.Lawrence Yun, NAR chief economist, said the recent drop in interest rates is an immediate impact of recent government action. “August sales reflect higher interest rates before the government takeover of Freddie Mac and Fannie Mae, and the sudden drop in mortgage interest rates over the past couple weeks is improving housing affordability,” he said. “With higher loan limits and a beefing up of the FHA program, all the mechanisms have been falling into place to increase mortgage availability.

“However, home sales will be constrained without a freer flow of credit into the mortgage market. The faster that happens, the sooner we’ll see a broad stabilization in home prices that in turn will help the economy recover,” Yun said. “Historically, housing has led the nation out of economic doldrums – there will not be an economic recovery without a housing recovery.”

The national median existing-home price for all housing types was $203,100 in August, down 9.5 percent from a year ago when the median was $224,400.

Total housing inventory at the end of August fell 7.0 percent to 4.26 million existing homes available for sale, which represents a 10.4-month supply at the current sales pace, down from a revised 10.9-month supply in July.

Single-family home sales slipped 1.4 percent to a seasonally adjusted annual rate of 4.35 million in August from an upwardly revised pace of 4.41 million in July, but are 9.6 percent below the 4.81 million-unit level a year ago. The median existing single-family home price was $201,900 in August, down 9.7 percent from August 2007.

Existing condominium and co-op sales dropped 8.2 percent to a seasonally adjusted annual rate of 560,000 units in August from an upwardly revised level of 610,000 in July, and are 19.0 percent below the 691,000-unit pace in August 2007. The median existing condo price was $212,600 in August, which is 7.2 percent below a year ago.

Regionally, existing-home sales in the Midwest rose 0.9 percent in August to a pace of 1.14 million but are 12.3 percent below August 2007. The median price in the Midwest was $168,000, down 5.6 percent from a year earlier.

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Across the U.S., sales of existing homes climbed in July to their highest level in five months, the National Association of Realtors said.

In the Midwest, existing-home sales rose 0.9 percent to an annual rate of 1.12 million in July, but are 17.0 percent lower than July 2007. The Midwest’s median price was $175,400, up 1 percent from a year ago, the Realtors group said.

Nationally, existing-home sales, which includes single-family, town homes, condominiums and co-ops, went up 3.1 percent to a seasonally adjusted annual rate of 5 million units in July from a downwardly revised level of 4.85 million in June. But that is a drop from the 5.76 million-unit pace in July 2007.

Total housing inventory at the end of July was 4.67 million existing homes available for sale, which represents an 11.2.-month supply at the current sales pace, up from a 11.1-month supply in June. The rise in supply results from a sharp increase in condo inventory; the single family supply declined, according to the National Association of Realtors.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage hit 6.43 percent in July up from 6.32 percent in June.

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Second quarter home sales in Illinois increased over the first quarter of 2008 but were lower when compared to the same period in 2007, according to the Illinois Association of REALTORS’ second quarter report. Total home sales (and that includes single-family homes and condominiums) were 32,414 in the second quarter, down 25.4 percent from 2007 when the sale of 43,438 homes was reported. The median home sale price for the quarter was $192,500, a drop of 6.8 percent from 2007’s $206,500. 

“While sales certainly have picked up across Illinois during the early spring and summer months, some buyers and sellers seem to be waiting for the all-clear signal to make a move in this market as economic and consumer confidence indicators remain weak,” said Kay Wirth, president of the Illinois Association of REALTORS.

  Wirth added that the new first-time buyer tax credit and foreclosure rescue program enacted by the Housing and Economic Recovery Act “should help stabilize the housing market.”

According to the Federal Home Loan Mortgage Corp., the second-quarter commitment rate for a 30-year, fixed-rate mortgage for the North Central Region averaged 6.12 percent, which was down from 6.40 percent one year ago.

   In the Chicagoland Primary Metropolitan Statistical Area, total home sales (including single-family and condominiums) dropped 28.9 percent in the second quarter to 20,679, as compared with the 29,092 homes sold in the second quarter last year. The median home sale price in the Chicagoland PMSA was $250,000 in the second quarter compared to $256,000 one year ago.

“Research shows that just one sale of a residential home in Illinois results in $28,413 in direct expenditures to other industries such as purchases of new furniture and appliances, repair costs and moving expenses. The housing market’s impact on the state’s economy underscores why REALTORS urge state and local government leaders to keep jobs in Illinois and foster a healthy economy,” said Wirth, a broker with Re/Max Unlimited Northwest in Crystal Lake.

Second quarter condo sales across the state were down—9,141 condos sold compared to 13,897 units sold in the second quarter of 2007. The 2nd quarter median price for a condominium in Illinois was $232,000, up from $223,000 a year ago.

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The latest forecast from the National Association of Realtors is predicting a recovery in sales of existing-home sales during the second half of the year.

NAR President Richard F. Gaylord said the current market offers immediate benefits and long-term value for many buyers. “Home buyers are getting a great deal right now,” he said. “Although inflationary expectations appear to be under control for the time being, sharper consumer price gains could lead to notably higher mortgage interest rates in 2009.”

Based on current indicators, the 30-year fixed-rate mortgage is forecast to rise gradually to 6.5 percent by the end of this year, and then hold at that level for most of next year.

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Home sales in Illinois were up in June over May, according to the latest report from the Illinois Association REALTORS. Low consumer confidence and a troubled economy, however, continue to strain the overall housing market, the report found.

Total home sales (including single-family homes and condominiums) were up 3.6 percent in June to 11,643 sales compared to May’s 11,243 sales. Year-over-year sales were down 27 percent from June 2007’s 15,945 sales. Illinois’ June median price was $200,000, down 6.1 percent from $213,000 in June 2007.

“There continues to be large local market variations statewide,” said Kay Wirth, president of the Illinois Association of REALTORS. “Economic factors have weighed heavily on home sales activity in Illinois this summer. Low consumer confidence, higher gas and good prices, plus turmoil in the financial markets and a tighter credit market have kept some would-be buyers on the sidelines despite the fact there are great deals to be had,”

The REALTORS’ group also reported that the monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 6.38 percent in June 2008, up 0.34 points from the 6.04 average rate the previous month. Those stats are according to the Federal Home Loan Mortgage Corp. Last June the rate averaged 6.69 percent.

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