Washington, DC, Aug. 27—The market for existing single family home sales eased in July while remaining near historic highs, according to the National Association of Realtors. Existing home sales slowed 3% to a seasonally adjusted annual rate of 5.17 million units in July from a pace of 5.33 million units in June. However, last month's sales activity was 7.3% above the 4.82 million unit pace of last July.

Dr. David Lereah, NAR's chief economist, said easing sales could be expected in the second half of the year. "We experienced record levels of home sales activity during the first half of the year. Given the huge volume of home sales over the last five years, we're still seeing a very strong demand, but the pressure is starting to ease. Even so, sales should remain above the five million watermark level for the second half of the year. NAR projects total sales at 5.18 million in 2001, the second highest on record.

NAR president Richard A. Mendenhall said affordability conditions remain favorable.  "The good news is mortgage interest rates have been declining, and are now close to 6.9%. This is providing opportunities for first-time buyers, who are fundamental to the overall health of the housing market.”

According to Freddie Mac, the national average commitment rate for a 30 year, conventional, fixed rate mortgage was 7.13% in July, down from 7.16% in June; it was 8.15% in July of last year.

The national median existing home price was $150,800 in July, up 5.2% from the same period last year when the median price was $143,300. Housing inventory levels at the end of July dropped 5.1% from June to a total of 2.05 million existing homes available for sale, which represents a 4.8 month supply at the current sales pace; there were 2.16 million homes available at the end of June. The July inventory level is 3.5% higher than last year, when 1.98 million homes were on the market.

Regionally, existing home sales in the Northeast rose 3.2% in July to a pace of 650,000 units; the sales rate was unchanged from July 2000. The median existing home price in the Northeast was $153,300, up 6.5% from a year ago.

Existing homes in the Midwest were selling at an annual rate of 1.12 million units in July, down 1.8% from June; the pace was 7.7% above July 2000. The median price in the Midwest was $134,100, up 4.1% from July 2000.

The existing home sales pace in the South slipped 1.9% in July to an annual rate of 2.07 million units, but were 8.4% above July 2000. The median price of an existing home in the South was $141,600, which was 6.7% higher than a year ago.

Home resales in the West fell 8.9% in July to an annual rate of 1.33 million units, but were 9% above July 2000. The median existing home price in the West was $190,900, up 4.3% from the same month a year earlier.

Copyright 2001 Floor Focus Inc