Monday, May 24, 2010

The pain remains, for West Coast home prices....

The National Association of Realtors announced that sales of existing homes (versus new homes) rose in April:
Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.
Lawrence Yun, NAR chief economist, said the gain was widely anticipated. “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” he said. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”

The hangover continues on the West Coast, where the prices got the most out of hand:

And by metro area. These regions have been clobbered, thanks to price-to-median income ratio's hitting 10x during the peak (in LA), versus the national average near 4.6 at the peak and the 3x long term average.

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