Home Sales Rise, Home Values Drop to 2002 Levels

The national home sales statistics are in for 2011 from the National Association of Realtors (NAR).

December showed a 5% increase in sales over November, which was 4% over October. October was 3.6% over September. So, for 3 straight months, sales increased. This is not earth-shattering news, but it is good news considering that Fall is usually a time when home sales start to slow down.

The national median sales price slipped a little over the year, just 2.5%. Of course, the news here is that 32% of the sales in December were distressed sales, ie. short sales and foreclosures. This number was up 3% from the November. Foreclosures sold for an average discount of 22%, up 2.% from the previous year, while short sales sold an average of 13 % below value, down 3% over the year.

Median sales prices are close to 2002 levels due to the anchor of foreclosures and short sales.

According to NAR, the number of contracts that don’t make it to closing was up to 33% in December. This is mainly due to two things, financing failures and appraisals that come in lower than negotiated sales prices.

Look for a continuing trickle of distressed sales to enter the Frederick Real Estate market in 2012.

And Keep this in mind, real estate is still a good investment over time.[ Empasis Mine]

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