A report by The National Association of Realtors shows that on the national level existing home sales dropped -5.1% in the month of June, though sales are up +9.8% since last year. The sale price of homes increased +5.2% from last month, but just +1% from last year. With inventory up to 8.9 months of supply, there is a lot of downward pressure on home prices.
Here in the sweet, sunny South, the level of home sales is more improved that the Western states, but less so than our Northern-Eastern neighbors. According to the National Association of Realtors seasonally-adjusted existing home sales in the South are down -6.5% from last month, but are up +11% from this time last year. Sale prices on homes in the South are up +6.4% in June, but flat from this time last year.
I read this as being hugely influenced by the home-buyer credit. No doubt there was a rush to buy prior to April 30, which is the deadline for having a binding contract. (The deadline for closing on these sales was June 30, but then was extended). Despite this volatility in monthly data, home sales are up for the year. The question remains how much the home-buyer credit spurred buyers to come into the market that wouldn’t have otherwise, or whether the credit just encouraged those that planned to buy regardless, to do so in the first part of the year.
Harli L. Palme, CFP®