Both the National Association of Realtors (NAR) Existing Home Sales index and the Commere Department’s New Residential Sales statistics showed continued increases in home sales activity in April, prompting some to wonder whether the elusive bottom is approaching.

One important aspect of these statistics worth noting is that these increases have come largely at the lower ends of the price spectrum. Evidence points to some mild increases in mid-range activity, but according to NAR economist Lawrence Yun, “high-end home sales remain sluggish.”

So volume and median prices are both increasing. Does this mean we have reached a bottom? Probably not. These improved numbers are likely a result of several factors, not the least of which is a constriction of supply in the market due to foreclosure moratoria in place over the last several months. Furthermore, looking at regional numbers shows that some regions are not fairing as well as others. In the West region, existing home sales volume was up in April but median price fell, indicating the bottom has not yet arrived.

From a brighter perspective, increased volume will eventually clear out excess supply and lead to a bottoming of prices. Looking at local markets provides evidence that this process of supply reduction and price stabilization may already be occuring. If you’d like to know what prices and supply are doing in your local market, contact us at Cirios Real Estate for a complete evaluation.

This entry was posted on Thursday, May 28th, 2009 at 5:11 pm and is filed under Housing Perspective, Property Valuations. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.