Existing Home Sales Slip In July

Home resales slipped in July.

According to the National Association of REALTORS®, Existing Home Sales nationwide fell to 4.67 million units on a seasonally-adjusted annualized basis last month. It's the fourth straight month below the 5 million mark, and the report's lowest reading since November 2010.

An "existing home" is a home that's been previously occupied or owned.
In addition, the Existing Home Sales report showed home supplies rising nationwide. At the current pace of sales, in other words, the complete, national "For Sale" inventory would be exhausted in 9.4 months. This, too, is the worst reading since November 2010.

On a units basis, however, the number of homes for sale actually fell in July. As compared to June, home resale inventory dropped 65,000 units to 3.65 million.

From these figures, we can infer that, despite low mortgage rates and lagging home values, buyer activity is slowing in New York and nationwide. This may be seasonal, or it may be a long-term trend.
Either way, there's opportunity for today's home buyers.

With mortgage rates at all-time lows, home affordability is peaking. More households can afford housing payments than during any time in history and with the fall season approaching, buyers in Queens, and the New York City area may find contracts negotiations to be more "friendly".

This can mean lower sale prices and larger concessions from sellers -- the hallmark of a Buyer's Market.
It's a good time to look at your options. Talk to your real estate agent and see what's out there for you. Low home prices may persist, but low mortgage rates likely won't.

The Song Remains The Same. Statistical data with little improvement if any. By and large, all real estate is local.
There are great investments out there for the Buyer. You need to have vision to see down the road. That road may lead you to where your goals are aiming at.

Till next time

The New York Real Estate Nurse

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