Existing Home Sales Fall Less Than Expected

By:: Peter King | July 22, 2010

Sales of existing homes fell in June, as the housing market continues to feel the effects of the end of the homebuyer tax credit.

The 5.1 percent decline was about half of what analysts expected. Sales fell to a seasonally adjusted annual rate of 5.37 million units, according to the monthly report from the National Association of Realtors, down from 5.66 million in May. Analysts had predicted a rate of around 5.1 million units.

On an annual basis, the June figures represent a 9.8 percent increase over the June 2009 rate of 4.89 million units.

The June sales data still reflect sales initiated under the tax credit, as buyers close sales initiated before the tax credit deadline. Homebuyers had until April 30 to sign sales contracts to qualify for the credit, but have until Sept. 30 to actually close sales.

The inventory of unsold homes increased 2.5 percent in June, to 3.99 million units available for sale, representing an 8.9 month supply, up from 8.3 months in May. Even so, the median sales price for homes of all types rose to $183,700, representing 1.0 percent annual increase over June 2009.

“The supply of homes on the market is higher than we’d like to see,” said Edward Yun, NAR chief economist. “But home prices are still holding their ground because prices had already overcorrected in many local markets.”

The NAR predicts home sales will remain soft throughout the summer, as the stimulus effect of the tax credit continues to fade over the next two months.

“Despite these market swings, total annual home sales are rising above 2009 and we’re looking for overall gains again this year as well as in 2011,”said NAR President Vicki Cox Golder. “Conditions have become more balanced in much of the country, which is good for both buyers and sellers.”

On a regional basis, existing home sales rose nearly 8 percent in the Northeast in June, but declined by comparable rates in the other three major regions of the country.

Call For Rates

800-419-1494

Speak to a lender now.

We will match calls to our toll free number with our network of lenders.

See Today's Rates

National Rates

Loan Type	Today	+/-
30 yr fixed	3.69
15 yr fixed	3.00
5/1 ARM	2.69

Rates may contain points

Compare Rates »

Browse Mortgage Rates

Featured Guides

Browse our comprehensive guides to popular topics related to mortgage and personal finance.

Real Estate Calculators

Mortgage Loan Directory and Information, LLC or Mortgageloan.com does not offer loans or mortgages. Mortgageloan.com is not a lender or a mortgage broker. Mortgageloan.com is a website that provides information about mortgages and loans and does not offer loans or mortgages directly or indirectly through representatives or agents. We do not engage in direct marketing by phone or email towards consumers. Contact our support if you are suspicious of any fraudulent activities or if you have any questions.

Mortgageloan.com is a news and information service providing editorial content and directory information in the field of mortgages and loans. Mortgageloan.com is not responsible for the accuracy of information or responsible for the accuracy of the rates, APR or loan information posted by brokers, lenders or advertisers.