For the 4th consecutive month, the Existing Home Sales report revealed what today's buyers and sellers already know -- there's a lot of buyer activity right now.
Existing Home Sales surged 7-plus percent in November, posting its largest number of recorded sales in 33 months. Sales volume is up 44% higher versus last year.
It's another example of the housing market in recovery.
There were other interesting statistics buried in the November data, too. According to the National Association of Realtors:
1. 51 percent of home buyers were first-timers
2. Distressed properties accounted for one-third of all sales
3. The median home sale price rose slightly
But of all the stats from the November Existing Home Sales report, perhaps the most important one is the one showing home supplies falling to 6.5 months. It's nearly half of the home supply available last November.
The rapid run-off of inventory throughout 2009 is more than a trend at this point and suggests higher home valuations in 2010. Especially because mortgage rates are low, tax credits are available, and the press is giving housing positive coverage.
Despite all the hype that now is a good time to buy you should keep your own financial situation in mind. If your job is not completely secure you may want to hold off when it comes to moving on up to a larger home or moving from the rental to home ownership. I recommend FHA loans to all first time home buyers. You may not want to pay the mortgage insurance, but it may be worth the peace of mind. Do not put all your eggs in one basket even if that basket is a home. By the way I am in the business of selling real estate, but not at the expense of your financial stability.
