Woe Is Housing, Existing Home Sales Plummet

The housing market can’t seem to catch a break.  The existing-home sales numbers were sharply lower in July according the National Association of Realtors®.  The number of sales dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009.  The drop, larger than anticipated, continues to add negativity to an already morbid housing market and continues to breed fear, uncertainty and doubt to not only senior homeowners but the broader population.  Single family sales reached their at the lowest level since May of 1995 and the total housing inventory at the end of July represented a 12.5 month supply.

“Consumers rationally jumped into the market before the deadline for the home buyer tax credit expired. Since May, after the deadline, contract signings have been notably lower and a pause period for home sales is likely to last through September,” said Lawrence Yun,  NAR chief economist. “However, given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs.