Existing home sales posted the largest decline nationwide, down 27.2% from June and 25.5% from same period last year. This is the lowest level in 15 years and to further add salt to the wound housing supplies went from 8.9 months to 12.5 months, the worst reading in 11 years.
What is very interesting and points to some strength is that median prices were only down .2% from June and .7%($182,600) from last year. The reality is that with increased inventories and more short sales and foreclosures on the way, there will be pricing pressure in the months to come.
The carnage was felt across the country and very telling are the figures that foreclosures represented 22% of sales, while short sales made up another 10%. Distressed sales will continue to plague homeowners that are hoping to sell in the coming months.
Here in the Burbank area we are seeing similar findings as our inventories have risen to between 5-6 months and prices were down 1.5% month over month in July. We have to go back to jobs and the local economy for a glimpse into the future, but make no mistake that foreclosures and short sale properties will be with us for a few years.
We may not officially be in a double dip, but the numbers are pointing to a significant amount of slowing. Whether this will go up from this point or give us months of lackluster sales is hard to say, but it is all part of the housing market recovery process, which overall is a good thing and will lead us to a more stable housing market.
More to come tomorrow as the fun continues with New Home Sales data being reported.
Call me at 818-795-8474 or email me at ana@anaconnell.com if you would like to schedule a free comparative home analysis for the sale of your home discuss sales in your neighborhood.
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- Existing Home Sales Plunge 27.2% to Lowest Level Since 1999 (dailyfinance.com)
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Good article, Ana. It's disappointing to see those numbers, but buying obviously slowed when the tax credit went away. Too bad, because interest rates are amazing!