Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Existing home sales fall 5.1%

homes_fall_gi.top.jpg By Ben Rooney, staff reporter


NEW YORK (CNNMoney.com) -- In the latest sign of renewed turbulence in the housing market, an industry group said Thursday that sales of existing homes fell 5.1% in June.

The National Association of Realtors reported that existing home sales fell last month to a seasonally adjusted annual rate of 5.37 million units, down from 5.66 million in May. Sales year-over-year were up 9.8%.

Analysts had expected sales to fall to an annual rate of 5.09 million units, according to consensus estimates from Briefing.com.

"The housing industry is slogging through a swamp looking for solid ground," said Mitchell Hochberg, a principal at Madden Real Estate Ventures. "With mounting foreclosures, growing consumer pessimism and a rise in inventory, the only path to recovery is an increase in employment."

June sales still reflect the impact of a popular $8,000 tax credit, which is due to expire in September after Congress extended the June 30 closing deadline.

But analysts expect the housing market to deteriorate as the credit expires and unemployment remains high.

Meanwhile, the inventory of homes on the market rose 2.5% in June to 3.99 million units. At that level, it would take 8.9 months to sell all the existing homes on the market, compared with 8.3 months of inventory in May.

"The supply of homes on the market is higher than we'd like to see," said NAR chief economist Lawrence Yun, adding that home prices have held up well despite the glut.

The national median existing-home price for all housing types was $183,700 in June, up 1% from a year ago, according to NAR.

The report comes after government data showed Tuesday that new home sales fell to an 8-month low in June, while the number of building permits issued in the month rose.

But the combination of declining sales and excess supply means home prices will fall later this year, according to Mark Vitner, a senior economist at Wells Fargo. "As a result, homebuilding will be restrained even further, making it a bigger drag on second half economic growth," he said To top of page


Overnight Avg Rate Latest Change Last Week
30 yr fixed3.90%4.01%
15 yr fixed3.01%3.13%
5/1 ARM3.19%3.26%
30 yr refi3.98%4.12%
15 yr refi3.08%3.23%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,689.86 -56.12 -0.32%
Nasdaq 5,128.28 -0.50 -0.01%
S&P 500 2,103.84 -4.79 -0.23%
Treasuries 2.20 -0.06 -2.78%
Data as of 7:05am ET
Company Price Change % Change
Bank of America Corp... 17.88 -0.25 -1.38%
Micron Technology In... 18.51 -1.39 -6.98%
Apple Inc 121.30 -1.07 -0.87%
Frontier Communicati... 4.72 0.09 1.94%
Ford Motor Co 14.83 -0.27 -1.79%
Data as of Jul 31

Sections

Some families are outraged at the sums they've been offered by Lufthansa as compensation for the Germanwings plane crash in March which killed 150 people. More

China's factories hit an unexpected speed bump in July, hiking concerns about slower growth in the world's second-largest economy. More

Luxury European automakers Audi, BMW and Daimler have teamed up to acquire Nokia's mapping and location services business for 2.8 billion euros ($3.1 billion). More

Fast-food chains that operate in more than 30 locations nationwide are the sole target of a new rule in New York to hike their minimum wage to $15. But consumers and small business owners, as well as some employees, may be the ones to pay the price. More

You can't blame it on the economy anymore. More Millennials now have jobs, but are still living at home. More