Existing Home Sales, Home Prices, Meltdown

Housing market weakens again

From CNN:

Sales of existing homes slowed more than expected in June while inventory increased, according to an industry trade group reading of the sluggish housing market released Thursday.

The National Association of Realtors reported that sales by homeowners dipped in June to an annual pace of 4.86 million, down 2.6% from a pace of 4.99 million in May.

The existing home sales rate - including single-family, townhomes, condominiums and co-ops - was 15.5% below the 5.75 million units sold in June 2007.

The 4.86 million sales figure came in well below the 4.95 million estimate forecast by economists surveyed by Briefing.com.

The median price of a home sold during the month fell to $215,100, down 6.1% from $229,000 a year earlier. Prices are being pushed down by the growing number of existing homes on the market.

Homes available for sale at the end of June rose 0.2% to 4.49 million, which represented an 11.1-month supply at the current sales pace, up from a 10.8-month supply in May.

For months now, the NAR’s chief economist/cheerleader has had his head in the sand, predicting a second-half turnaround for the real estate market. Six months into the year, sales are plummeting, prices are dropping, and the bottom looks farther and farther off.

Not surprisingly, the NAR’s press release fails to mention that oft-predicted later-year bounce. Maybe the realtors are finally coming to grips with the fact that this meltdown in the housing industry is going to be much longer than they anticipated.

speak up

Add your comment below, or trackback from your own site.

Subscribe to these comments.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

*Required Fields