Tuesday, July 25, 2006
Realtors: Home sales now a 'buyer's market'
Sales of existing homes fell in June for the eighth time in the past 10 months while home prices edged up at the slowest pace in more than a decade — more signs that the housing market has slowed dramatically.
Yes, prices were up year-over-year. A whopping 0.9%. But inventories continue to grow and that just means it is a matter of time.
"The change in price performance is directly tied to housing inventories - a year ago we had a lean supply of homes and a sellers' market, with monthly home sales at an all-time record high," David Lereah, chief economist for the group, said in a statement. "Sellers have recognized that they need to be more competitive in their pricing given the rise in housing inventories."
The inventory of homes for sale on the market is now at 3.7 million, up a whopping 39 percent from a year ago. That resulted in a 6.8-month supply of homes for sale at the current sales pace, up from only a 4.4-month supply in June 2005.