According to Freddie Mac, the average 30-year, conventional, fixed-rate mortgage fell to a record low 5.00 percent in March 2009 from 5.13 percent in February 2009. A year ago the same time the rate was 5.97 percent.

Homes sales for March 2009 in recovering markets were higher than a year ago according to the National Association of Realtors because of the affordability factor and low interest rates as well as tax credits for first time home buyers. The Minneapolis, Northern Virginia, Las Vegas, Phoenix and the majority of California and Florida markets are seeing some recovery as a result of these factors.

Inventory Decreasing
The NAR reported that the total housing inventory by the end of March 2009 had fallen 1.6 percent to 3.74 million existing homes available for sale. This now represents a 9.8-month supply. Single-family home sales are 5.7 percent below March 2008. The median existing single-family home price was $174,900 for March 2009, 11.5 percent lower than March 2008.

Condominium and co-op sales fell 4.1 percent to an annual rate of 470,000 units in March 2009 from 490,000 in February 2009, 17.8 percent below the 572,000-units a year ago the same time. The median existing condo price was $177,600 in March 2009, down 18.7 percent from a year ago.

National Homes Sales
Home sales in the Northeast fell 8.0 percent to 690,000 in March 2009, down 22.5 percent from a year ago. The median price was $231,700, down 18.4 percent from one year ago.

Home sales in the Midwest were unchanged in March at 1.04 million, and are 11.1 percent lower than March 2008. The median price was $141,300, down 6.1 percent from March 2008.

For the South, home sales were down 1.7 percent to 1.71 million in March 2009, 10.9 percent below March 2008. The median price in the South was $146,900, down 12.2 percent from one year ago.

For the West, home sales were down 4.2 percent to 1.13 million in March 2009, 18.9 percent higher than a year ago. Good news for the West. The median price in the West was $252,400, 11.1 percent below a year ago.

So all in all the low interest rates, first time home buyers entering the marketplace as a result of affordable housing and tax credits and sellers being able to move up or down in some marketplaces is encouraging that the housing market may be slowly recovering in the hardest hit areas. 50% or more of the properties sold have been distressed properties which explains the lower affordability factor since these homes sold for 20% less than non-distressed homes according to the NAR.

As always, thanks for reading this post and if you enjoyed it be sure to comment below. Also, check out our FREE 2009 Loan Modification Guide: Saving Your Home From Foreclosure.