Carpe Diem

Median price for existing-homes sold in September increased 11.25%, posting largest year-over-year gain since 2005

The National Association of Realtors (NAR) reported today on existing-home sales in September, here are some highlights:

1. The median sales price for existing-home sold in September was $183,900, which was an increase of 11.25% from a year ago when the median sales price was $165,300, and marked the seventh straight monthly increase in year-over-year median home prices.  For the month of September, the median sales price this year was the highest since 2008.

2. September’s 11.25% year-over-year increase in median price was the largest annual gain in home prices in almost seven years, going back to a 12.9% increase in November 2005, and the seven consecutive monthly year-over-year increases in median home prices through September 2012 was the first time of a streak that long in median price increases since the seven month period ending in May 2006, more than six years ago.

3. Sales of existing homes rose in September by 11% above the same month last year, which was the 15th back-to-back monthly increase in home sales on a year-over-year basis. The last time of 15 consecutive monthly year-over-year increases in home sales was from August 2004 to November 2005.

4. The median marketing time for homes sold in September was 70 days, a decrease of 31 days in marketing time from the 101 days median marketing time for homes sold last September. For homes sold in September, almost one out of three (32%) sold in less than a month, while 19% stayed on the market for six months or more.

MP: More evidence from today’s report on existing home sales and median prices that “we’re experiencing a genuine recovery” in the U.S. housing market, as NAR economist Lawrence Yun commented in the organization’s press release.  Compared to last year at this time, we can definitely say that more homes are selling faster at higher prices, which is what a housing recovery looks like.

4 thoughts on “Median price for existing-homes sold in September increased 11.25%, posting largest year-over-year gain since 2005

  1. Completely off-topic.

    I just read, on pg. 13 of Continental Resources latest investor presentation, that existing, planned and proposed oil takeaway capacity for the ND-MT Bakken will increase to ……. are you ready? ………………….

    ………… over 3 million barrels/day by Q3 2017.

    Of course that doesn’t mean all that capacity will be used. But still …

    Download and scroll to pg. 13

    It’s got lots of info on Continental’s new SCOOP too.

  2. The housing market is behaving like a drunk having a Bloody Mary to cure a hangover. Alcohol and caffeine may provide some temporary relief, but only purging the bloodstream of alcohol will cure the hangover, or in this case, purging the system of real estate appreciation kool aid.

    The HELOC and perpetual QE are like meth. addiction. There a rush of euphoria and energy, then the down, followed by another hit to repeat the cycle. More is required each time for the high and energy boost. The face starts to deteriorate due to meth-induced obsessive compulsive (OC) behaviors. There are pimples and itches that are scratched until they become scared craters. It’s not very pretty.

  3. With supplies constrained, prices battered, and interest rates at all time lows, there has never been a better time to invest in housing.

    With leverage, look to double, triple or more your equity in next several years. Wall Street won’t do that for you.

    Good luck all!

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