Showing an increase of five point one percent, existing home sales consists of single-family, condominiums, co-ops, and townhomes. On a seasonally-adjusted annual rate, sales of theses homes increased to four point seven two million units by the end of February, up from four point four nine million units posted for the month of January.
The NAR reports that 50% of these reported sales were generated from first-time buyers. First-time buyers are generally bargain hunters; upwards of 45% of these sales were "distressed" sales (bank-owned or short sales). Currently reports show that distressed homes typically sell for twenty percent less than average.
The recently enacted home buyer tax credit has helped to spur activity in the market. The number of prospective buyers increased five percent throughout the month of February over the previous year. For qualified buyers, affordability is at a record high. The new tax credit comes at the traditional start to the spring time home buying season.
In the west, sales increased two point six percent to an adjusted annual rate of one point two million by the end of February, and remain steadily over 30% higher than in 2008. The median price of a home in the west sits at $204,600. This price is just under 31% lower than in February 2008.
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