Tuesday, June 22, 2010

Existing Home Sales Fall 2.2%; Median Sales Price Up 4.2%

After increasing steadily for two months leading up to the end of the homebuyer tax credit, existing homes sales fell back 2.2% in May to an annualized rate of 5.66 million. Existing home sales are recorded at the date of closing, so the credit may continue to bolster sales through June. However, at some point in the next few months, it is likely that sales will fall off as the effects of the credit have now worn off.

Despite the decrease in sales over the month, the months supply of inventory fell to 8.4 from 8.3 as less homes were listed. The supply of inventory will have to continue to decline before prices can be certain to have bottomed out. Over the month the median sales price rose 4.2% to $179,600, continuing a three month trend of price appreciation. From a year earlier, prices were up 2.7%.

Source: National Association of Realtors

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