Sales of Existing Homes Stable in July

August 27, 2007 - Existing-home sales were essentially unchanged in July, with increases in the West and Northeast offset by a decline in the Midwest, the National Association of Realtors® (NAR) reported on Aug. 27.
Existing-home sales slipped 0.2% in July to a seasonally adjusted annual rate of 5.75 million units from an upwardly revised pace of 5.76 million in June. They were 9% below the 6.32 million-unit rate of a year earlier.
"Home sales probably would be rising in the absence of the mortgage liquidity issues of the past two months," said Lawrence Yun, the association's senior economist. "Some buyers with contracts have been scrambling when loan commitments did not materialize at the last moment, while other potential buyers are simply waiting for the mortgage market to stabilize."
The total housing inventory rose 5.1% at the end of June to 4.59 million existing homes available for sale, which represents a 9.6-month supply at the current sales pace, up from an upwardly revised 9.1-month supply in June.
"For buyers able to qualify for conventional financing, there are ample opportunities in the current market," said NAR President Pat V. Combs. "Availability and pricing of conventional loans are reasonable, and FHA-insured mortgage applications have been rising as low- and moderate-income buyers seek alternatives to subprime loans. If buyers are in it for the long haul, now can be a good time to get into your home."
Regionally, existing-homes sales rose 1.8% in the West to a rate of 1.12 million and 1% in the Northeast to a rate of 1.02 million. They remained unchanged in the South at an annual rate of 2.26 million and fell 2.2% in the Midwest to 1.35 million.