Inventory of Unsold Homes Increased While Sales of Existing Homes Decreased In June
According to the National Association of Realtors, the seasonally adjusted rate for June was 5.4 million units. Though up 9.8% from a year ago, purchases of previously owned homes dropped 5.1% in June. Throughout the country, there was only one exception to this drop in sales and that is in the Northeast where sales rose 7.9% from
May. However, sales dropped by 9.3% in the West, which is a significant drop.
Tax credits were expected to clear up the inventory of some of these unsold homes. Unfortunately, what the month of June brought was an increase of inventory. The inventory of unsold homes rose to 3.99 million (a 2.5% increase) in June. This is the highest level since August of 2009.
It’s not all bad news though, NAR President Vicki Cox Golder said, “Despite these market swings, total annual home sales are rising above 2009 and we’re looking for overall gains again this year as well as in 2011,” She added, “Conditions have become more balanced in much of the country, which is good for both buyers and sellers. However, consumers find it even more challenging to navigate the transaction process, especially for distressed properties, which only underscores the value Realtors® bring to buyers and sellers in this market.”
Another bit of good news is falling interest rates, which have proved to be one of the few positives in the current real estate market. The future will tell if this is enough, however it is making owning a home more affordable and possible for many buyers. Even though, there exists a possibility of this working against the current market, many buyers are seeing this as an opportunity to buy a better home at a more affordable bottom line and with lower interest rates.
With inventory growing and sales of existing homes declining, it’s more important than ever to look at the possibilities available. It may be an even better time to buy whether you are a first-time homebuyer, a move-up buyer or an investor.
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