Sales of existing homes fell in October to an annual rate of 4.43 million units, a small decline from the prior month, but a 26% plunge from the same month a year ago, according to new figures released by the National Association of Realtors.
The realty trade group – which recently criticized mortgage bankers for being too tight with credit – tried to put a good face on the numbers, saying "The housing market is experiencing an uneven recovery, and a temporary foreclosure stoppage in some states is likely to have held back a number of completed sales."
NAR is projecting that by the spring the annualized rate will improve to 5 million units. (The figures represent sales of single-family detached units as well as townhouses, condos and cooperatives.)
The trade group reported that the median existing-home price for all housing types fell to $170,500 in October, a 0.9% decline from a year ago. The sale of distressed homes accounted for 34% of sales during the month, compared to 35% in September, and 30% in October 2009.
NAR president Ron Phipps repeated the Realtor complaint that lenders are being "overly tight" on credit, and also blamed foreclosure moratoriums for stifling home buying. He added that, "we are continuing to deal with a notable share of appraisals coming in below a price negotiated between a buyer and seller."
The trade group said according to one of its surveys, 10% of Realtors in October had a contract cancelled as a result of a low appraisal, with 13% having a contract delayed. Roughly 16% of Realtors said the sale price was negotiated lower "as a result of a low appraisal."
