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Home arrow Real Estate News arrow General News arrow Real Estate Snag Sales
Real Estate Snag Sales Print E-mail
Wednesday, 23 August 2006
A steeper 4.1% fall of existing home sales were seen in July as the market hit a record high signaling further difficulty for homebuilders trying to sell new homes.  The National Association of Realtors said Wednesday that total existing home sales came in at an annual rate of 6.33 million for July. That is the lowest sales in two years. The number was below the downwardly revised pace of 6.6 million in June, and 11.2% below the 7.13 million mark in July 2005. .   An increase of about 0.9% from a year was evident in the national median existing-home price for all housing types as $230,000 in July.  The national median existing-home price for all housing types was $230,000 in July, up 0.9% from a year earlier. The median is a typical market price where half of the homes sold for more and half sold for less.  The inventory of homes for sale spiked to a whopping 3.86 million units, which represents a 7.3-month supply at the current sales pace.  "Inventories were up almost 40% higher from year-ago levels, and this is an environment of slowing sales," says Phillip Neuhart, an economic analyst with Wachovia.  "There's no reason we can't go back to the pre-boom levels (of 2003)," when annual sales totaled less than 6 million, Neuhart says. From June to July, sales declined across the country. Sales fell 6.4% in the West, 5.9% in the Midwest, 5.4% in the Northeast and 1.2% in the South.  The sales numbers are a lagging indicator of the housing market since the data is based on home closings, which trail contracts by about two months.   
 
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