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New Home Sales
According to U.S. Census Bureau data, national new home sales weakened again from November to December, declining 7.6 percent. On a year-over-year basis, sales softened as well, falling 8.6 percent following a 5.1 percent decline in November. Sales in the South Census region declined as well from November to December, dropping 7.3 percent. Sales also remained below the year-earlier level, down 7.8 percent in December following an 8.6 percent decline in December.
According to our informal survey of District builders, January new home sales growth softened somewhat on a year-over-year basis. Half of the builders surveyed reported that sales were flat to slightly up compared with a year earlier during January. However, more contacts reported declines in January than in our December survey. Weakness remained most pronounced among Georgia builders.
District builders indicated that buyer traffic improved notably in January on a year-over-year basis. Nearly 75 percent of contacts reported that traffic was flat to slightly up compared with a year earlier; in December, 61 percent reported that traffic was flat to slightly up. Builder comments indicated that a great deal of uncertainty remains. However, despite these concerns, the outlook for sales growth over the next three months improved modestly again. Improvements in the outlook were driven mostly by more optimism among Georgia contacts from low levels while the outlook among Florida contacts remained positive but faltered somewhat. Elsewhere in the District the outlook remained slightly positive.
Existing Home Sales
According to quarterly state existing home sales data from the National Association of Realtors (NAR), single-family and multifamily residential sales in the District for the fourth quarter of 2009 continued to improve on a quarter-over-quarter basis, rising 15 percent. Gains continued to be noted across the region with the exception of Louisiana, where sales fell 4.8 percent. On a year-over-year basis, District sales continued to improve, rising 33.7 percent following an 11.1 percent increase during the third quarter. Increasing sales in Florida markets continued to drive District improvements. Florida sales increased 59.3 percent during the fourth quarter compared with a year earlier.
Monthly data from the NAR indicated that December's existing single-family home sales for the South Census region dropped sharply from November, down 16.1 percent, while sales remained above the year-earlier level, up 13.8 percent following a 41.8 percent increase in November. The South's median home price declined 0.5 percent compared with a year earlier while nationally the median home price turned positive for the first time since July 2006, increasing 1.4 percent.
Responses from our informal survey of District Realtors indicated that home sales softened somewhat in January on a year-over-year basis. Nearly half of our contacts reported that sales increased on a year-over-year basis, while in December nearly 60 percent reported increases. Realtors indicated that high-end home sales remained weak but continued to improve while low- to midpriced home sales growth softened. Some noted that weather had been a deterrent to sales, but buyer traffic picked up somewhat compared with a year earlier. On a year-over-year basis home inventories were mixed; however, reports indicated that unsold inventory increased from December. Most contacts continued to report year-over-year declines in home prices, and more than half reported that prices had declined from December. The outlook among Realtors remained positive but softened somewhat from December.
Alabama
Florida
Georgia
Louisiana
Tennessee
Note: No comparable data are available for Mississippi.
Alabama
Data from the Alabama Center for Real Estate indicated that home sales growth during December measured on a year-over-year basis softened but remained positive while home prices turned positive. Existing home sales increased 9.6 percent in December on a year-over-year basis following a 53.4 percent increase in November. The state's median home price increased 5.8 percent in December compared with a year earlier following a 2.3 percent decline in November.
Florida
According to data from the Florida Association of Realtors, existing single-family home sales growth remained above the year-earlier level in December but softened somewhat while declines in the median home price continued to moderate. Home sales rose 32.8 percent on a year-over-year basis following a 61.3 percent increase in November. The median home price declined 9.6 percent in December compared with a year earlier following a 12.1 percent decline the prior month.
Georgia
According to data from SmartNumbers, Atlanta's existing single-family home sales growth moderated in December on a year-over-year basis, rising 1.6 percent following a 37.4 percent gain in November. Median price growth for existing homes softened as well in December but remained slightly positive, up 0.9 percent from a year earlier. New home sales growth in November turned positive for the first time since June 2006, rising 7.5 percent from a year earlier. The median new home price moderated, falling 8.3 percent from a year earlier following a 13.1 percent decline in October.
Louisiana
Data from the New Orleans Metropolitan Association of Realtors indicated that home sales measured year over year continued to weaken and turned negative in January, declining 14.4 percent.
Similarly, the Greater Baton Rouge Association of Realtors reported that Baton Rouge home sales increased a modest 5.6 percent in December following a more robust gain of 39.3 percent year over year the prior month.
Tennessee
According to data from the Greater Nashville Association of Realtors, single-family home sales softened in January, equaling the year-earlier level, while the median home price turned slightly negative again, declining 3.6 percent from a year earlier.
The Knoxville Area Association of Realtors reported that single-family home sales growth on a year-over-year basis rebounded in January, rising 18.1 percent following an increase of 0.9 percent in December.
Data
