National Condo Market Pulling a U-Turn
By Anthony Longo 19 11 2008
Washington, D.C.–Existing home sales increased 2.6 percent in from the second to the third quarter, according to the National Association of Realtors (NAR).
Nationwide, sales of existing homes, including condos and single-family, were at a seasonally adjusted annual rate of 5.04 million units in the third quarter, up from 4.91 million units in the second quarter, according to NAR. This number, however, is lower year-over-year by 7.7 percent compared to the 5.46 million-unit pace in the third quarter of 2007.
Lawrence Yun, NAR chief economist, says conditions continue to range widely. “A pattern of sharply higher sales in areas with large price declines is well established,” Yun says.
“Affordability conditions have consistently been a major factor in driving sales. Historically during recessions, buyers have responded to incentives and it’s important for government to keep that in the forefront of stimulus decisions,” he says.
In the condo sector, metro area condominium and co-operative prices—covering changes in 57 metro areas—showed the national median existing-condo price was $210,800 in the third quarter, down 7.1 percent from $227,000 in the third quarter of 2007. Sixteen metros showed annual increases in the median condo price and 41 areas had price declines.
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