The National Association of Realtors released their existing home sales figures and give a July decrease of -3.5%, annualized rate, from June. The yearly increase is a statistically anomaly and Calculated Risk reports Benchmark revisions due out this fall, should be significantly downward.
From the NAR press release:
Total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 3.5 percent to a seasonally adjusted annual rate of 4.67 million in July from 4.84 million in June, but are 21.0 percent above the 3.86 million unit pace in July 2010, which was a cyclical low immediately following the expiration of the home buyer tax credit.
Fannie Mae just announced mortages rates are their lowest in over 50 years:
Mortgage rates, fixed and adjustable, reaching all-time record lows providing further incentive for those homeowners looking to refinance. The 30-year fixed averaged 4.15 percent, breaking the previous record low of 4.17 percent set November 11, 2010.
Distressed homes sales were 29% of all sales. These are short sales, foreclosures. Cash sales were 29% of all sales as well. The NAR typical discount claimed is 20% for distressed sales.
This means people are picking up foreclosures, short sales at so called bargain prices. First time home buyers were only 32% of all home sales.
The national median price was $174,000, a -4.4% drop from one year ago. A headline caught my eye claiming 60% of all home sales in the West were less than $100,000. That is plain wrong. Existing home sales of properties less than $100,000 is up 60% from one year ago (59.7%). Below is the charge of existing home sales percent change distribution from a year ago.
Regionally, existing-home sales in the Northeast rose 2.7 percent to an annual level of 750,000 in July and are 19.0 percent above July 2010. The median price in the Northeast was $245,600, down 6.8 percent from a year ago.
Existing-home sales in the Midwest increased 1.0 percent in July to a pace of 1.05 million and are 31.3 percent above a year ago. The median price in the Midwest was $146,300, down 2.9 percent from July 2010.
In the South, existing-home sales declined 1.6 percent to an annual level of 1.84 million in July but are 19.5 percent above July 2010. The median price in the South was $152,600, which is 2.2 percent below a year ago.
Existing-home sales in the West fell 12.6 percent to an annual pace of 1.04 million in July but are 16.9 percent above a year ago. The median price in the West was $208,300 down 7.1 percent from July 2010.
Median means half, half of existing home sales prices were below $208,300, not $100,000, in the West region.
Nationally, 22.8% of existing homes sold were below $100k.