Dennis Norman
By: Dennis Norman
The National Association of REALTORS(R) released its existing home sales report for June showing an increase in sales for the 3rd month in a row as well as higher prices in June.
Existing home sales, including single-family, town-homes, condominiums and co-ops increased 3.6% in June to a seasonally adjusted annual rate of 4.89 million units. This rate is almost identical to last years sales at the same time which is a first in a quite a while. May’s rate was down 3.6% from a year ago and June is down just 0.2% from a year ago.
Here in the Midwest sales were at a seasonally adjusted annual rate of 1.1 million homes. This is a modest 0.9% increase over May and is 1.8% below the same time last year.
Median home prices in the U.S. rose 4% from $174,700 for May to $181,800 for June which is down 15.4% from a year before. For the Midwest the median home price for June increased almost $10,000 from May to $157,000 which represents a drop of slightly over 9% in the past year.
I think the numbers show there is some confidence on the part of home buyers and they are coming off the sidelines. The first time home buyer credit is definitely playing a part in this.
Lawrence Yun, NAR Chief Economist
Lawrence Yun, the chief economist for the National Association of REALTORS(R) is hopeful about the gain. “The increase in existing-home sales occurred in all major regions of the country,” he said. “We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions. Despite the rise in closed transactions, many REALTORS(R) are reporting lost sales as a result of new appraisal standard that went into effect May 1 of this year.”
A June survey of NAR members shows 37% experienced at least one lost sale as a result of the new Home Valuation Code of Conduct (HVCC), with seven out of ten reporting an increased use of out-of-area appraisers. Seventy percent of NAR appraiser members said consumers were paying higher fees, while 85% report a perceived reduction in appraisal quality.
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