The year 2007 ended on a low note with existing-home sales at 5.652 million for the year, 12.8 percent below the 6.478 million transactions recorded in 2006, NAR reported this morning. Despite the decline, sales for 2007 were the fifth highest on record. The median sale price for all housing types was $218,900 in 2007, down 1.4 percent from a median of $221,900 in 2006.
December figures are just as bleak. Existing-home sales slipped 2.2 percent to 4.89 million units from 5.00 million recorded in November and were 22 percent below the 6.27 million units sold in December 2006, reports NAR. The national median sale price for existing homes for all housing types fell 6.0 percent in December to $208,400 from $221,600 a year ago. At the end of December, 3.91 million homes were available for sale, representing a 9.6-month supply at the current sales pace.
NAR chief economist Lawrence Yun says, “Home sales remain weak despite improved affordability conditions in many parts of the country, but we could get a quick boost to the market if loan limits are raised in combination with the bold cut in the Fed funds rate.”