February Roundup: Number Of Home Sales Down, Even As Prices Push Up Washington: Economists who monitor home sales around the country say the nation is beginning to go through a curious period, with the total number of sales starting to fall - not because there are no buyers, but because there aren't enough sellers. In January, for instance, the rate at which homes sell on a national basis was down 10.7 percent compared to the rate in January 1999. While gradually increasing interest rates are part of the problem, many parts of the country report there just are not enough homes for sale to satisify demand. At the end of January, there were 1.15 million existing homes available for sale nationwide, which represents only a three-month supply. That figure also is a record low for national inventory - indicating that the supply of homes has dropped more than 23 percent from December 1999 and has fallen nearly 44 percent from one year ago. As could be expected, a result of short supply is higher prices. According to the National Association of Realtors, the national median price of an existing home is $132,200, up 1.5 percent from a year ago.
Interest Rates Waffling, But Generally Up Washington: The housing industry is reporting that mortgage interest rates are continuing their slow move up from year ago levels, but there also are indications that many home buyers are not be deterred by the rates. Freddie Mac reports that the national average commitment rate for a 30-year, conventional fixed-rate mortgage was 8.21 percent in January, compared to 7.91 percent in December and 6.79 percent in January 1998. Ironically, however, a recent study that focused on the California housing market suggested there had not been an uptick in the number of consumers seeking Adjustable Rate Mortgages, which start with a lower rate and then increase over the life of the loan. According to Acxiom/DataQuick, only 32 percent of the state's home buyers needed ARMs to purchase homes in December, compared to 32.4 percent in November. The data firm suggests that means that most people have ample funding to buy homes.
Boomers Buying Second Homes San Diego: Real estate researcher Acxiom/DataQuick is reporting that of 6.1 million homes purchased last year, about 800,000 of them were vacation or "second" homes purchased largely by aging baby boomers. The company notes that the number of second-home sales has been steadily increasing over the years, accounting for about 13 percent of all homes sold last year. The study showed that 38 percent of those homes were bought with cash (no mortgage) and the median price was about $92,000. Predictably, the largest markets for second homes were Florida, California and Nevada. Also See:
PEMs Mean A Less Energy Dependent Future Upper Marlboro, Md.: The research center of the National Association of Home Builders says the day is coming when homes will be less dependent on local utilities for their electrical power, instead generating their own electricity from "polymer electrolyte membrane" (PEM) fuel cells installed in the house. In cooperation with Energy Partners LC of West Palm Beach, Fla., the research center has been testing PEMs, which create electricity through an electrochemical conversion process. The cells combine hydrogen -- derived from fuels such as natural gas, propane, methanol, or gasoline -- and oxygen to produce electric power without combustion. The reaction is quiet and similar to a battery except that, unlike a battery, the fuel cell never needs to be "recharged." | 
