Existing Home Sales Down 5% in June; Inventory Up 2.5%

Yet another sign of an anemic housing market: Existing home sales fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million units in June, compared to May – but sales remain 10 percent above the rate of one year ago.
The National Association of Realtors also reports that total housing inventory at the end of June rose 2.5 percent to 3.99 million existing homes available for sale – an 8.9-month supply at the current sales pace, up from an 8.3-month supply in May.
“The supply of homes on the market is higher than we’d like to see. But home prices are still holding their ground because prices had already overcorrected in many local markets,” said Lawrence Yun, NAR chief economist.
Raw unsold inventory remains 12.7 percent below the record of 4.58 million in July 2008.
Home sales, both new and existing, have slumped since the expiration of homebuyer tax credits at the end of April.
“Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels,” Yun said.
The national median existing-home price was $183,700 in June, which is 1.0 percent higher than a year ago. That includes all types of homes: single-family, condos, townhomes and condos.
Distressed homes were at 32 percent of sales last month, compared with 31 percent in May. It was also 31 percent in June 2009.
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