The third quarter showed sales of single-family homes and condominiums totaling at a seasonally adjusted rate of 6.27 million units. This figure is down 12.7% below a 7.18 million unit figure achieved in the third quarter of 2005. In spite of a decline, there were 10 states which reported increases in sales from 2005.
There are 148 metro areas included in the NAR quarterly report. Of these areas, 102 showed price increases of these 21 areas had double digit increases over the previous year. 45 metro areas had declines in pricing, while only one area remained unchanged.
The NAR reports that the current market conditions are almost the exact opposite of what they were one year ago. They also state that the current trends in pricing will more than likely continue into the foreseeable future. There is however, a modest gain in average price anticipated to occur in most metro areas in 2007.
The current market trends continue to mean good news for buyers. The NAR reports that home inventories are at their highest levels in over 10 years, which makes it a great time to purchase. The current situation will continue in to the New Year. Inventories will decrease and conditions will continue to balance out in most metro areas in early spring.
The Fed reports that the average rate on a 30-yr. conventional mortgage with a fixed-rate came in at 6.56% in the 3rd quarter of 2006. This figure is down from 6.60% from the 2nd quarter. In 2005 the rate was 5.76%. The rate for last week was down to 6.24%
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