According to Radar Logic's January 2009 RPX Monthly Housing Market Report, sales in the 25 metropolitan statistical areas (MSAs) the report tracks declined 6 percent in the year ending January 2009, compared to 36 percent in the prior year.
The slowing annual decline of transactions was due to an increase in motivated sales, which Radar Logic defines as sales to third parties at foreclosure auctions and sales of foreclosed homes by financial institutions and foreclosure service firms. While this rapid growth in motivated sales reflects the increase in foreclosures over the last year, it also reflects significant demand for homes that are priced at 'motivated' discounts.
REAL Trends Comment: As readers can tell the housing market appears to show signs of improvement over the past few months. However, various sources of data show more of a seasonal improvement and not a cyclical improvement. Simply put even in tough markets we expect to see an improvement as we enter the spring months and a decline as we enter the fall of each year. That is a seasonal change not a cyclical change.
A cyclical improvement will show when sales, inventory and time on market changes are positive when comparing the same month of this year to the same in month in"
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