Everyone knew that Existing Home Sales were going to stink the joint up today — but I just had to laugh when I read the NAR commentary; The headline along was priceless: July Existing-Home Sales Fall as Expected but Prices Rise. Too bad they don’t cover other events: “Lincoln attends theater opening; leaves early with headache.”
They are the world’s most awesome/awful cheerleaders on the planet.
Bloomberg notes: “Foreclosures and short-sales are boosting the so-called shadow inventory, and competing with owners trying to sell properties. Home seizures increased almost 4 percent in July from the previous month, with 325,229 properties last month getting a notice of default, auction or bank repossession, RealtyTrac Inc. said Aug. 12.”
The housing data itself contains some worthwhile data points:
• National median existing-home price was $182,600 in July 2010 — 0.7% higher than June 2009.
• Distressed homes were 32% of sales, vs. 31% in July 2009.
• First-time buyers purchased 38% of all homes, down from 43% in June, according to an NAR survey. The decrease in the purchase of starter homes helps to explain the price rise.
• All-cash sales were at 30%, up from 24% in June.
• Total housing inventory rose 2.5% to 3.98 million homes — an 12.5 month supply at the current sales pace, up from 8.9 months in May.
• Unsold inventory remains 12.9% below the record of 4.58 million in July 2008.
• Existing-home sales in the Northeast dropped 29.5% (30.3% down from July 2009): They were down 35% in the Midwest (off 33.3% from July 2009); They fell 22.6% in the South (19.8% lower than July 2009); and were down 25% in the West (off 23% from July 2009).
Note that July home sales still have some tax credit closings, so the data is not perfect.
UPDATE: An error was made in transcribing some of the data from the NAR release; it has been corrected; the bullet points above reflect the updated data. Our apologies for the error.
Existing-Home Sales Slow in June but Remain Above Year-Ago Levels
National Association of Realtors, July 22, 2010
July Existing-Home Sales Fall as Expected but Prices Rise
National Association of Realtors, August 24, 2010
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.