February 2012 Existing Homes Sales Best February in Five Years – Housing Market Continues Recovery

The National Association of Realtors® reported February 2012 homes sales of 4.59 million on a seasonally-adjusted annualized rate—a gain of 8.8 percent when compared to February 2011.  That’s really good news for the housing market since home prices typically follow the trajectory of sales numbers, although lagging 18 to 24 months.  

 

To remove the seasonality noise from the data, the following table shows a 12-month moving average of existing home sales.  Focus on the rising sales numbers in the red circle and realize that the market indeed is recovering.  Existing home sales on a 12-month moving average basis have now increased in six of the past seven months.

 

 Home values may have finally stabilized, after declining almost 27 percent from the peak in July 2006.  This now makes three months that prices (on a 12 month moving average) have remained static.  I am calling a bottom to the housing market at this time.

 

While home sales and prices are far off of the 2002 levels (which I consider normal given that period was following the 2001 recession and prior to the stupidity of subprime lending which caused the bubble), sales numbers are finally increasing and prices have stabilized.  I truly believe that housing has turned the corner to recovery—and that is great news.
Click here to read the entire NAR press release.

Ted

Comments

  1. Chris Norton

    Actually the US economy is slowly and gradually recovering from the great economic recession and the results are apparent on every market and industry including real estate and housing. The past few months have been good for the real estate industry and people have again started to show interest in properties and houses. Your date again points to the same fact.

  2. Legend Trail

    My Uncle’s real estate agent happened to tell the seller’s real estate agent that we found out some of these things on the property – most importantly about the flooding – and now the selling real estate agent wants me to sign a bunch of documents listing out what I found out as if she had told me about them. I don’t want to do it – it took considerable effort for me to uncover these issues and I have already signed off on contingencies. I don’t think I need to also let her off the hook as if she had disclosed these things to me – she did not. Can the realtor force me to sign these?

    1. Ted C. Jones Post author

      I recommend you seek legal counsel from an attorney licensed to do business in your state.

      Ted

  3. shendrel, Realtor app - Pixehome

    The data you have posted on your blog gives information on improvement in the real estate market industry in US during the years.Thanks for sharing this information providing an insight to people buying a new home.
    It is a good blog providing a complete picture of US real estate market on how steadily the real estate market is recovering.

  4. Fiona

    I agree with the slight turnaround in the US housing market and interest in property, especially when considering the markets across the world, particularly UK. Research seems to indicate that both countries rely heavily on the economy of the property market – however the UK does not seem to be having the same positive increases as in the US.

  5. Tom

    Thanks for sharing these data. For what I see is that the US existing home sales slightly bounce upward and hope it will continue to rise.

  6. Plot in jaipur

    The National Association of Realtors® reported February 2012 homes sales of 4.59 million on a seasonally-adjusted annualized rate—a gain of 8.8 percent when compared to February 2011.

  7. fort worth home inspector

    Certainly we have broken out of the slump, prices are now showing an accelerating trend.

  8. Peter Abelard

    nice infomation here.

  9. Emmanuel

    Really it’s so good information for the real estate industry. After few years later now it’s recovering. So I wish very soon,it will be get back like past strong position.

  10. Win Realty Advisors

    Such a nice blog! I really enjoyed reading your blog. Thanks for sharing and posting it here. I’ve got some idea about real estate and buying a home. Thanks! :)

  11. Edgehomes

    I visited your site & after visiting i found that it is very informational for everyone. You have done really a great job. Thank you!

Leave a Reply