Existing Home Sales Down in July but Up From a Year Ago

In response to the National Association of Realtors (NAR) data, released August 18th, showing that existing home sales slipped nationally and regionally in July, I issued the following statement:

“The research released by the National Association of Realtors showing a decrease in existing home sales reflects a continuing fall in the housing market, which is now basically at the bottom, with little or no movement expected in the short- to medium-term.  The reason for the continuing decline in July can be attributed to  negative jobs data throughout the month of July, as well as a crisis of confidence related to the debt ceiling impasse.  In addition, when purchasing a home, buyers often look to capturing the “sweet spot” between low pricing and low interest rates.  The Fed’s announcement last week to keep the short-term rate at near-zero for another two years removed any urgency for buyers who now have the convenience of waiting out the market to see if prices will in fact get a bit lower before pulling the trigger.   Although July 2011 sales compared to July 2010 are up, this increase is misleading, as last July was the first month of sales data after expiration of the homebuyer tax credit, meaning sales were pushed forward into the months leading up to July 2010, causing that month’s sales to be unusually low.  As such, a significant increase was expected.”

Here is the link to the official release: NAR Official Release