Existing Home Sales Fall To 8-Month Low. So what else is new!!!

The song remains the same. We are undulating along the economic winds. Existing Homes Sales seem to shadow the economy. The trend, which is usually are friend, is the way to follow along to make economic sense out of all this.  You would think?

Shadow Inventory slowed during the Banker's Robo Signing mess and less inventory was released to the public for sale. The January 2011 low of 7.5 months was a result of that mess. Now, 6 months later we are at 9.5 months of inventory, their are other factors in-vowed, spring selling season for one, tightness in the mortgage market another and on and on.  Now to the meat of this report.

Home resales slipped for the 3rd straight month, according to data from the National Association of REALTORS®.

The Existing Home Sales posted a 1 percent drop from May as the number of homes sold fell to a seasonally-adjusted, annualized 4.77 million units. It's the monthly report's lowest reading since November 2010.
The report also showed the national supply of homes for sales rising to 9.5 months -- also its highest reading since November 2010. Home Supply is the amount of time it would take to exhaust the complete home inventory at the current pace of sales.

June's Existing Home Sales data would have been stronger if not for a high contract cancellation rate. As compared to May's 4 percent rate, June's cancellation rate was 16 percent; an elevated figure that "stands out in contrast" to what's typical, according to the REALTOR® trade group.

By region, home resale activity varied:

• Northeast : -5.2% from May 
• South :+0.5% from May
• Midwest : +1.0% from May
• West : -1.7% from May

This disparity from region-to-region highlights an important housing market concept. Namely, that all real estate is local. Because just as the Existing Home Sales varies on a regional level, it varies on a state-wide level, too.

What's true for California housing is not necessarily what's true for New York housing, for example. Each of the 50 states has its own trends, and within those 50 states, there are thousands of cities and neighborhoods, each with their own trends, too.

The "national housing market" doesn't exist, so national data is rendered somewhat useless.
For data in New York City or your local market, talk to your real estate agent.

Anybody hear a phone ring?

Till next time

The New York Real Estate Nurse