New Home Sales Slip in June
According to figures from the US Department of Commerce (PDF, 30k), sales of new single-family homes slipped 22.3 percent in June (as compared to June 2006). June sales hit a seasonally adjusted annual rate of 834,000 units as new home buyer demand continued to weaken. The June new home sales pace was down 40 percent from the housing market peak in mid-2005. June new home inventories stood at 537,000 homes or about 7.8 months of inventory. Median average-days-on-market for new homes were approximately 180.
June Resale Home Activity Slides
The National Association of Realtors Existing Home Sales Report for June shows resales down 13.6 percent (not seasonally adjusted) as compared to June of 2006. Resale inventory is up 12.3 percent to 8.8 months worth of homes on the market.
There's still good news, you just have to look for it! While the national sales statistics are down, remember that real estate is a local business and markets around the country vary widely. Take the time to analyze your market, so that you have a clear picture of what's really going on. For instance, here's some information on Houston to illustrate that you need to look past the basic numbers to understand what's really happening.
Houston's single-family home sales in June declined 8.4 percent compared to the same month last year, yet prices continued rising. Look closely and you'll discover that almost all of the June decline was within the $80,000 to $140,000 price range and can be attributed to tighter restrictions in the sub-prime lending market. Home sales in price ranges lower or higher than $80,000 to $140,000 continued at a steady pace, and prices in June continued to display steady growth, as both the median and average total sales price set new records.
What's up in your market? You don't know unless you run the numbers.
