Sales of existing homes in June fell 2.6%, to a seasonally-adjusted annualized rate of 4.99 million - - the lowest level in 10 years - - the National Association of Realtors announced Thursday.Economists surveyed by Bloomberg News had expected June existing home sales to total a 4.94 million annualized rate. The annualized rate totaled 4.99 million units in May; a year ago, in June 2007, it was 5.75 million units.
Meanwhile, the national, median, existing home price for all housing types was $215,100 in June, down 6.1% from a year ago when the median was $229,000.
Existing home sales varied by region. Sales rose 1% in West, but fell 6.6% in the Northeast, 3.4% in Midwest, and 3.1% in the South.
'Bad time to be a home seller'
Economist Peter Dawson said the June existing home sales statistic shows that the housing market remains a buyer's market.
"No question, it's a bad time to be a home seller. Existing home prices continue to slide in most markets, and there's little in the data to suggest a turnaround, given the U.S. economy's doldrums," Dawson said. "My advise for those who are in the market to buy and don't have to buy a house right now - - wait it out, quarter by quarter. Prices in your market could drop considerably."
Equally significant, inventories - - unsold homes – totaled 11.1 months at the current sales rate, up from a 10.8-month supply in May. A typical, healthy housing market has a 3-4 month supply of unsold homes on the market.
Economic Analysis: A slight rise in existing home sales earlier this spring proved to be a blip, which underscores the need to evaluate the housing market over 3,4,5 months - - not simply on one monthly data point. Further, it's also difficult to assess the housing market solely on June, July, August data: they're skewed higher, due to families moving when grade school children are out of school. With the above in mind, we'll need to wait until October before one can gauge, with confidence, the extent of the housing recession. For now, it's clear that prices and sales are continuing to soften in most markets, with a recovery not in sight.
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Reader Comments (Page 1 of 1)
7-24-2008 @ 1:47PM
Limoman said...
Oh BALONEY! the Problem with these " Reports" is? A. It's by The Real Estate Industry.. Biased and they Want to see lower Int. Rates to sell more Houses..
B. A larger portion of these Homes are in very high Risk Spec. Markets of Fla/AZ/Cal.. and In Distressed Poor areas of Alot a Poor Minorities that had no business owing a Home , let alone being able to buy one..
In the Midwest ( North Suburbs of Chicago) and Northern Illinois and Southern Wisc. Things are doing fine and is business as usual..
Sure prices are down about 5% from Their Very High Peak, but Are still selling at Above their Real Values, using our 8% apy for the past 20 yrs..around here..
We have Hundreds of thousands of Middle and Upper Income Kids building up and just waiting for priced to come down more and then it will be a Buying Boom... Expect this when? Next Spring!
So, BALONEY and the Negative sayers..
7-24-2008 @ 1:55PM
Limoman said...
AWWW GEE..I feel so sorry for the RE Agents..
They can't Con people as easy anymore?
They can't Sell Sub Prime Useless Deals anymore to Way Underqualified Buyers, Even Illegals?
They can't Sell Houses that are STILL 20% Higher than they really are worth?( In Cal. & AZ, make that 30% more than they're worth)
The same Agents who Con the Banks and ruined Families Lives, just to make a buck?
AWWWW I feel so Sorry for them..
NOT
7-24-2008 @ 2:00PM
Limoman said...
I'm Surprised there are Any RE Agents still left? Most of them belong in Jail after what they did in participating in the Sub Prime con Game.. Selling Homes even to Illegals? Let alone all those Underqualifed People !
GIVE ME A BREAK!
It's called KARMA my friend, KARMA..
Our town loves it..we got alot of Nice big homes, sitting Empty.. But the RE taxes still have to be paid and we don't have to put up with alot more Kids in our schools and costing us more in services!
So what's the Downside?
7-24-2008 @ 6:51PM
william lindblad said...
The majority of this mess was not caused by minority buyers and illegals, go check out what HUD has for sale. The two F's are not suposed to carrying large note morgages, but they are. This was caused by cheap, easy money and speculation. The problem may not be in the Chicago subs., but it exists in most other areas of this country. I am not negative, I am practical. I do hope it will be over by spring, but I doubt it. One thing set off another and they all have to work their way through the economy, which is going to take months. In the interim, the layoffs continue and the default factor moves into the middle class. Inflation is worldwide and we are next, regardless of how the government likes to report it.