The National Association of REALTORS® (NAR) reported in late September that existing homes sales fell in August, caused in large part by recent adjustments within the mortgage industry. The overall national market for existing homes slowed 4.3 percent in August. NAR still anticipates close to 5.5 million units to be sold in 2007, which is 12.8 percent below last year's pace for existing home sales.

Average (Mean) Sales Price of Existing Homes by Region
Date 
U.S.
Northeast
Midwest
South
West
2004
$244,400
$273,600
$189,400
$215,600
$324,300
2005
266,600
297,000
203,800
231,700
363,800
2006
268,200
299,700
205,300
230,000
371,300
 
 
 
 
 
 
05/07
270,600
313,200
204,300
229,700
372,000
06/07
276,500
318,900
210,600
237,500
375,200
07/07r
276,000
317,200
214,800
232,600
376,400
08/07p
269,300
310,200
209,600
228,800
364,900
Statistics from the National Association of REALTORS®

On September 28th, the Wall Street Journal reported that the thirty year conventional, fixed rate mortgage was averaging 6.42 percent, which is up from 6.34 percent earlier in the month. Still, NAR president Pat Combs explains that today's mortgage picture is getting better. "Mortgage interest rates have been declining and loan availability is improving,” she said. “Movements to enhance the FHA loan program and to raise the limits for conventional financing could provide additional relief, and it looks like the worse of the mortgage availability problem is behind us. The abundant choice of homes is permitting buyers to better negotiate price and terms. There are good opportunities in the market now, especially for first-time buyers.”
The national median home price for all types of housing was up .02 percent from this time a year ago, to $224,500. The median is the typical market price where half of the homes sell for more and half sell for less.  "Price gains in the Northeast and Midwest were largely offset by a decline in the West, while medial existing home price in the South was down slightly, demonstrating that all real estate is local," Combs said.
Advice for home sellers!
Competition for qualified buyers is greater than it has been in years past, but there are still buyers out there who are willing, able, and interested in purchasing your home! If you are realistic about what it takes to sell in a buyers market — and you are willing to meet the buyer in today's market — then success can be yours! Here are a few tips to make your home stand out from the crowd:
Pricing - Price your home realistically.  Remember, buyers are comparing your home against all others and are looking to stretch their dollar. By pricing your home to sell, you end up saving time and money in the long run by keeping your home from being shop-worn and overlooked.
Home Inspection - How does your home stack-up against new construction?  Pre-existing homes often require more effort to maintain.  By ordering a home inspection and fixing any known defects, buyers can be confident in what they're buying.
Incentives - buyers love incentives. With larger housing inventories, incentives can be the deciding factor between your home and the competition.  Consider offering a free home warranty, a carpet allowance, or assistance with closing costs.  Incentives don't have to cost a lot to be attractive.
By offering value, you attract buyers and enhance your property's desirability.  If you are thinking of selling your home, please contact us for a current market analysis and marketing consultation.  There is no obligation for these services.