United States: Home Sales Fall in June

Sales of homes in the United States fell in June with some potential buyers staying on the sidelines, but prices rose slightly, according to the National Association of Realtors. Total sales fell 3.8 percent to an annual rate of 5.75 million units in June from a level of 5.98 million in May, and are 11.4 percent below sales in June 2006.

“Home buyers have been getting mixed signals about the housing market, which is causing some of them to hesitate,” Lawrence Yun, NAR senior economist, said. “Mortgage interest rates have risen recently, and tightening lending standards are continuing to hamper sales, but fewer risky loans will put the market on a healthier path. Although general buying conditions remain favourable for long-term home buyers, it appears some buyers are looking for more signs of stability before they have enough confidence to make an offer.”

The national average home price for all housing types was $230,100 (£112,300) in June, up 0.3 percent from June 2006 when the average was $229,300 (£111,900).

“Consumers should avoid making decisions based on what they hear about the national market because all real estate is local. There are pockets around the country where home sales are quite strong, so you really need to consult …about local market conditions, ” NAR President Pat Combs said.

Regionally, home sales in the South eased by 1.7 in June, and are 11.4 percent below a year ago. The average price was $190,800 (£93,100), up 0.7 percent from June 2006.

In the Midwest sales declined 2.8 percent in June to a level of 1.37 million, and are 8.1 percent below June 2006. The average price in the Midwest was $171,700 (£83,800), which is 1.5 percent below a year ago.

June home sales in the West dropped 6.8 percent to an annual pace of 1.10 million, and are 19.1 percent below a year ago. The average price was $340,000 (£165,900), down 0.4 percent from June 2006.

Sales in the Northeast fell 7.3 percent to a level of 1.01 million, and are 7.3 percent lower than June 2006. The average price was $294,400 (£143,700), up 1.8 percent from a year ago.