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New Home Sales
According to data from the U.S. Census Bureau, new home sales growth nationally and in the South Census region remained weak during January on a year-over-year basis. During January sales declined 34.8 percent and 33.9 percent on a year-over-year basis in the United States and the South, respectively.
According to our informal survey of District homebuilders, new home sales remained weak during February. Most contacts reported that new home sales fell below the year earlier level once again. The majority indicated that sales were down significantly compared with a year earlier. Many contacts did note improvements in buyer traffic. However, most buyers wanted deeper discounts. Interested buyers often found it difficult to secure financing. Florida and Georgia builders anticipate sales will be similar to weak levels a year ago while elsewhere in the District sales growth is expected to be more positive.
Existing Home Sales
According to the quarterly report on state existing home sales (single- and multifamily residential) by the National Association of Realtors, home sales in the District remained below the year-earlier level, down 21.9 percent in the fourth quarter of 2007. Weakness remained most pronounced in Florida, where sales declined 29.0 percent on a year-over-year basis, but not as weak as in the third quarter, when sales declined 32.0 percent. However, elsewhere in the District home sales also continued to slow. Sales declined sharply in Alabama from the third quarter. Furthermore, most District markets continued to experience softer home prices with most experiencing year-over-year declines.
Data from the National Association of Realtors show that that year-over-year declines in existing home sales in the South Census region remained weak during January, and median home price softened further. Home sales in the South declined 20.9 percent in January on a year-over-year basis following a 20.6 percent decrease in December. The South’s median home price declined 6.4 percent in January compared with a year earlier following a 5.3 percent decline in December.
Based on our informal survey of District Realtors, weakness persisted in housing markets during February as contacts continued to report year-over-year declines in home sales. Contacts indicated that sales growth weakened further while traffic remained soft. The majority of contacts continued to report that sales were down significantly compared with a year earlier. Additionally, interested buyers found it difficult to qualify. Listing inventories continued to decline among Florida contacts but elsewhere were little changed. Home prices remained below the year-earlier level by most accounts. Foreclosures have put additional downward pressure on prices. Overall, buyers remain uncertain and cautious.
Alabama
Florida
Georgia
Louisiana
Tennessee
Note: No comparable data are available for Mississippi.
Alabama
According to data from the Alabama Real Estate Research and Education Center, weakness persisted in the Alabama housing market. Existing home sales growth declined 16.2 percent in January on a year-over-year basis following a 17.6 percent decrease in December. The median sales price rebounded slightly, turning positive, up 1.0 percent from the year-earlier level. Listing inventories remained well above the year-earlier level across much of the state.
Florida
According to data from the Florida Association of Realtors, significant weakness persisted in Florida’s existing single-family markets during January as single-family home sales and prices remained below the year-earlier level. Existing home sales improved slightly in January but were down 28.0 percent measured year-over-year. However, the median home price declined further, down 14.1 percent in January on a year-over-year basis following a 12.9 percent decline the prior month.
January declines in home sales growth in the Jacksonville and Orlando markets held steady while in Tampa (the state’s largest single-family market) weakness was not as pronounced as in recent months. Sales in Tampa declined 24.1 percent during January on a year-over-year basis following a 32.5 percent decline in December. The year-over-year decline in the median home price was little changed in the Tampa and Jacksonville markets while the Orlando market experienced a modest improvement.
Data from the Orlando Regional Realtor Association show that home sales remained weak during February but improved slightly, down 40.2 percent on a year-over-year basis following a 44.7 percent decline the prior month. The median home price edged down 12.6 percent in February on a year-over-year basis following an 11.4 percent decline the prior month. The months-supply of homes moderated somewhat to 28.2 months after reaching a recent high of 31.6 months in January.
Georgia
According to figures from SmartNumbers Atlanta, existing single-family home sales deteriorated further in December while home prices turned slightly positive. Sales in December declined 34.2 percent compared with a year earlier following a 30.3 percent decline in November. Indications are that the decline in new home sales is deeper than in the existing home market. November new home sales declined 40.5 percent while new home prices remained slightly above the year-earlier level.
Louisiana
Data from the New Orleans Metropolitan Association of Realtors indicate that that home sales fell 34.3 percent during December on a year-over-year basis following a 20.5 percent decline in November.
Data from the Greater Baton Rouge Association of Realtors continued to show declining sales; sales fell 13.3 percent in February compared with a year earlier following a 20.0 percent decrease in January.
Tennessee
According to data from the Greater Nashville Association of Realtors, new and existing home sales remained below the year-earlier level during February. Sales declined 25.8 percent in February on a year-over-year basis following a 23.3 percent decline the prior month. Inventory remained at high levels while prices declined slightly on a year-over-year basis.
Similarly, data from the Knoxville Area Association of Realtors indicate that new and existing single-family homes sales remained below the year-earlier level. Sales declined 21.7 percent in February following an 18.7 percent decline in January. Inventory levels remained high.
