National Market Update

The National Association of REALTORS (NAR) reported in late February that existing housing inventory fell to a two-year low, a sign that excess inventory is being reduced across the country. Existing home sales — including single-family, condos, co-ops and townhomes — were down in January, falling 5.3 percent to an adjusted annual rate of 4.49 million units.

Nationally, qualified buyers are finding favorable mortgage rates hovering in the high 4 to mid 5 percent range for a 30-year fixed-rate loan. These historically low rates have created exceptional buying opportunities. According to Lawrence Yun, NAR chief economist, "The housing market will soon get a lift from very favorable buying conditions – not only from improved affordability, but also from the stimulus of an $8,000 first-time home buyer tax credit, and higher conforming loan limits that will allow more people to tap into 50-year low mortgage rates."

Existing Home Sales By Region

NAR anticipates an additional 900,000 home sales will result from the housing stimulus, and expects housing inventory to fall below an 8-month supply by year end. The reduction in inventory points to strengthening conditions in many markets across the country.

Home shopping has picked up with increased housing affordability. NAR president Charles McMillan said, "It appears most of the increase in buyer traffic occurred in the latter part of the month after the $8,000 first-time buyer tax credit was put in place. At the same time, mortgage purchase applications have risen, so we expect to see sales picking up around late spring."

Freddie Mac is reporting favorable mortgage rates hovering in the high 4 to low 5 percent range for a 30-year fixed-rate loan.

REMEMBER ALL REAL ESTATE MARKETS AND VALUES ARE DETERMINED BY THE LOCAL MARKET. 
TEXAS IS NOT EXPERIENCING THE DOWN TURNS THAT SOME METROPOLITIAN AREAS ARE EXPERIENCING.  THE DFW METROPLEX AREA REMAINS STABLE.
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