Existing-Home Sales Data: February 2009

Today, the National Association of Realtors (NAR) reported existing home-sale statistics for the month of February:
•National: median home price was $165,400, down 15.5 percent from February 2008
•Northeast: median home price was $251,200, down 4.8 percent from February 2008
•The Greater Philadelphia Region fared better than the national market with prices falling 8.4

So what does it mean? The national drop in homes prices is due to the increase in short sales and foreclosures. In fact, in February 48% of all sales nationally were short sales and foreclosures. The drop in the greater Philadelphia region is due to homes not in core areas losing value. In the city, core neighborhoods like Washington Square, Rittenhouse Square, and Society Hill are faring much better than those a few blocks away from them.

Personally, I've seen a little more activity over the past couple months than I did in late 2008. I believe we are forming a bottom of the market right now, with speculators and first time homebuyers taking advantage of lower prices and interest rates, and a glut in the market.