Sales Of Previously Owned Homes Fall 3.2%

Real Estate Agent with Realty One Group Trilogy 01835853
Sales of previously owned homes fell in July after four consecutive months of increases, according to the National Association of Realtors. The 3.2 percent decline was led by a 13.2 percent drop in the Northeast. The Midwest and South also saw decreases, while the West climbed 2.5 percent from the month before. Lawrence Yun, NAR's chief economist, says inventory and affordability are behind the decline. “Severely restrained inventory and the tightening grip it's putting on affordability is the primary culprit for the considerable sales slump throughout much of the country last month,” Yun said. “Realtors are reporting diminished buyer traffic because of the scarce number of affordable homes on the market, and the lack of supply is stifling the efforts of many prospective buyers attempting to purchase while mortgage rates hover at historical lows.” But though July's numbers fell, home sales are still expected to finish the year at their strongest pace since the housing crash and the number of homes available for sale actually improved during the month – though only by 0.9 percent. Currently, unsold inventory is at a 4.7-month supply at the current sales pace. A six month supply is considered healthy for the housing market. More here.

Comments (1)

Norm Padula, JD, GRI
Florida Realty Investments - Sarasota, FL
Presence, Persistence & Perseverance

Danon Burnside We read these numbers from the NAR and while they may be true for the median numbers for the Country, we prefer to view the regional market numbers and for our market in Florida; numbers continue to climb. In San Diego County, they does seem to be a slight pricing slump, but demand continues to be high. Keep up the  blogging!

Aug 28, 2016 07:30 AM