Home Sales Pace

Sales of existing U.S. homes continued to fall in June, correcting itself after the recent end of the federal tax credit, according to the National Association of Realtors.

Total existing homes sales fell 5.1 percent to a seasonally adjusted annual pace of 5.37 million units, down from 5.66 million in May. Sales are up however, in a yearly comparison with a 9.8 increase over June 2009 figures.

"June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months," said Lawrence Yun, NAR chief economist. "Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels."

The national median price for existing homes increased again in June though, moving up to $183,700, up from $179,600 in May and up 1.0 percent over the price from the same time last year.

The NAR defines existing homes as all previously-owned single-family homes, townhouses, condominiums, and co-ops. The group "seasonally adjusts" the sales numbers to factor in things like inclement weather, school sessions, winter holidays, etc to smooth out the trends. The NAR also describes its sales data based on an annual pace. The monthly figure represents the total number of housing units that would be sold in one year if the current rate were to continue unchanged.

Sales Pace by Region

Across the country June sales drooped in all areas by the Northeast. In that region, existing home sales rose by 7.9 percent to a seasonally adjusted annual pace of 960,000. That figure is up 17.1 percent from June 2009.

In the South, sales fell by 6.5 percent to a rate of 2.01 million units, but from the previous year sales are up 11.0 percent.

Sales in the Midwest sank by 7.5 percent from May to annual pace of 1.23 million. On a yearly basis, sales are up 11.8 percent.

The West experienced the greatest drop in sales, with a decrease of 9.3 percent from the month before. Compared with June 2009, sales are up just 0.9 percent.

Home Prices

In June, the median home price, the point at which half of all homes are sold for more and half are sold for less, increased in every single region on a monthly basis.

The median price in the West was $221,800, up 1.5 percent from June 2009.

The Northeast median price rose to $244,300 in June from $240,200 the month before . The new price is down 1.2 percent though from a year earlier.

In the Midwest, the median price increased to $155,900, up from $150,700 in May. June's price is a decrease of 0.1 percent from a year ago.

The median price in the South grew to $163,600 from $159,000, and it was unchanged compared with the previous year.

The median price in the West inched up to $221,800 from $221,300 in May. That also represents a 1.5 percent increase from June 2009.

Inventory

Housing inventory rose again in June after a quick dip in May, climbing 2.5 percent to 3.99 million existing homes on the market. At the current sales pace, that represents an 8.9-month supply, up from an 8.3-month supply the month before. Total inventory is down 12.7 percent from the all-time high of 4.58 million units in July 2008.

Next Report

Data for July existing home sales, prices, and inventory will be available at the end of August.