The National Association of Realtors released its report for existing home sales in the month of June, existing home sales are sales of existing homes as opposed to new home sales which are homes that are new construction.
June being a traditional month for home sales to increase after the doldrums of winter and families looking to move once the kids get out of school, expectations were that sales in June would surpass those of May. Unfortunately reality was different than May.
For the sixth month in a row existing homes sales declined from the prior month, with June sales down 0.8% from May 2011. On an annualized basis home sales are on pace for 4.77 million sales in 2011. At the current sales pace and inventory on the market there is a 9.5 month supply on the national market.
Regionally the Northeast was the major drag on total sales with a decline of 5.2% from May. In the West sales dropped 1.7% from May. The Midwest and South posted modest sales increases. Year to year sales are all down but that is largely skewed due to the expiration of the homebuyer tax credit last June.
Perhaps the most disturbing data in the report is that 16% of contracts were canceled in June, up from 4% in May. The abnormally high number of cancelations is a mystery to NAR and is most likely a combination of tighter credit and appraisal issues.
Some positive news in the report is that the national median home price inclined slightly from one year ago to $184,300 in June 2011 from $182,900 in June 2010.
Integral to our national economic recovery is a recovery in the housing markets. Integral to a recovery in the housing markets is a recovery in the job markets. While watching the national debate on the debt ceiling then the lead up to the 2012 elections keep in mind that until the private sector begins to hire our economy and our housing markets will be sluggish and anemic.
Mortgage rates continue to remain low for the time being. Call or email Dennis today to determine your purchasing power for a new home loan or monthly savings from a refinance. Direct dial 562-472-1118
Dennis C. Smith, California Dept. of Real Estate Broker #00966315; NMLS #296660
Stratis Financial Corporation, California Dept. of Real Estate Broker #01269597; NMLS #238166
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