NAR: Home Sales in Slight Decline

Home prices are still modestly increasing, but home sales are down.

From the National Association of Realtors:

"Total existing-home sales – including single-family, townhomes, condominiums and co-ops – declined 1.3 percent to a seasonally adjusted annual rate1 of 6.62 million units in June from an upwardly revised level of 6.71 million in May. Last month’s sales were 8.9 percent below the 7.27 million-unit pace in June 2005.

David Lereah, NAR’s chief economist, said the housing market is flattening-out. 'Over the last three months home sales have held in a narrow range, easing to a level that is near our annual projection, which tells us the market is stabilizing,” he said.

'At the same time, sellers have recognized that they need to be more competitive in their pricing given the rise in housing inventories. Home prices are only a little higher than a year ago.'”

The market has shifted slightly to favor buyers. The increase in inventory has led to a price correction that allows for a more balanced and less emotionally-driven market—which is positive—but also a more competitive one. More than ever, smart pricing is critical.

"The national median existing-home price for all housing types was $231,000 in June, up 0.9 percent from June 2005 when the median was $229,000. The median is a typical market price where half of the homes sold for more and half sold for less.

Total housing inventory levels rose 3.8 percent at the end of June to 3.73 million existing homes available for sale, which represents a 6.8-month supply at the current sales pace."

As we've mentioned before, however, the Spokane market is still very strong. Don't wait for this market to cool before you invest.