Today, NAR reported that home sales dropped 0.8 percent, to 4.77 million, this June–8.8 percent below June 2010’s sale of 5.23 million homes.
“Home sales had been trending up without a tax stimulus, but a variety of issues are weighing on the market including an unusual spike in contract cancellations in the past month,” Lawrence Yun, NAR’s chief economist said to World Property Channel. “The underlying reason for elevated cancellations is unclear, but with problems including tight credit and low appraisals, 16 percent of NAR members report a sales contract was cancelled in June, up from 4 percent in May, which stands out in contrast with the pattern over the past year.”
The nationwide median listing price was up an extra $1,000 from May 2011, at $189,900 in June 2011; last June the median price was recorded at $190,000. “While some markets remain fragile, median list price trends experienced in the past four months can be viewed as a positive sign that the overall market may have begun to stabilize,” said NAR in their monthly report.
For sale inventories dropped slightly from last month and dropped 15.78 percent from June 2010. Listings typically stayed on the market for 93 days, demonstrating little change from previous statistics, aside from December 2010 when the median age was 120 days (approximately 25 percent above current averages), said NAR.
NAR found that 107 (out of 146) markets displayed monthly increases in the median list price, and another 31 areas stayed flat, creating a much more positive outlook than May’s report when many markets displayed month-over-month declines.
Chicago’s year-over-year median list prices have declined 16.36 percent.