Thursday, July 22, 2010

Existing Home Sales Fall 5.1%; Median Sales Price Up 5.2%

Existing home sales fell for the second straight month, declining 5.1% to an annualized pace of 5.37 million units. Sales rose quickly through April, likely induced by the homebuyer tax credit which required buyers to enter into contract by April 30th. Sales have since fallen off in the wake of this event. Due to the way existing home sales are recorded, at the point of closing, there is a time lag in the data and therefore it is likely that the sales number will continue to decline for at least another month. From a year prior, sales were up 9.9%.

With the decrease in sales over the month, the months supply of inventory rose to 8.9 from 8.3. The supply of inventory will have to continue to decline before prices can be certain to have bottomed out. The historical normal is around 5 months of inventory. Over the month, the median sales price rose 5.3% to $183,700, continuing a four month trend of price appreciation. From a year earlier, prices were up 1.0%.

10.07.22 (Source: National Association of Realtors)

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