Is the Boise real estate market on a recovery path?

I like to report here both local statistics and related information, along with national numbers as well.  It helps to obtain a more clear outlook by looking at the big picture as well as the smaller. In previous posts I have provided March numbers for our local real estate market along with some other commentary, but I will take all the good news I can get so today I am including a national look.

The National Association of Realtors in providing the March sales report states; "We're clearly on a recovery path."

National Association of Realtors March Home Sales Data.

“Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,”

The numbers:

* Existing-home sales increased 3.7% from a month earlier to a seasonally adjusted annual rate of 5.10 million.

* About 40% of existing homes bought last month were distressed properties–including foreclosures and short sales. That was the highest percentage since April 2009.

* The median sales price for an existing home was $159,600, down 5.9% from the year-ago median price of $169,600.

* Meanwhile, the inventory of previously owned homes listed for sale climbed at the end of March to 3.55 million available for sale. That represented a 8.4-month supply at the current sales pace, compared with a revised 8.5-month supply in February.

* Last year was the worst year for sales of previously occupied homes since 1997, with about 4.9 million homes sold, according to the Realtors group.

Lawrence Yun, the Realtors chief economist, called the results “a decent figure, not a great figure.” All-cash sales are particularly strong, representing about 35% of all transactions, Yun said. That is likely an all-time high.

Yun, expects the improving sales pattern to continue. “Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said. “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain – primarily because some buyers are finding it too difficult to obtain a mortgage."

(Locally I am still concerned with our  unemployment rates, we need jobs to fuel a strong recovery.)

Yun continues, "For those fortunate enough to qualify for financing, monthly mortgage payments as a percent of income have been at record lows.”

Tight lending has made it difficult for many would-be buyers to enter the market. “Although home sales are coming back without a federal stimulus, sales would be notably stronger if mortgage lending would return to the normal, safe standards that were in place a decade ago – before the loose lending practices that created the unprecedented boom and bust cycle,” Yun explained.