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
