Home sales have dropped a significant amount in the last few weeks, indicating that the housing market remains weak.
Existing home sales fell for the second straight month in June, reflecting the poor condition of the economy. Due to the poor values of real estate, this could mean difficulty in selling homes. Much of the American population is now stuck; leading to a very muddied and stagnant economy. Without the healthy balance of selling and buying homes there is a fear that the economy could worsen and fall deeper into depression.
Sales of existing U.S. homes, including condominiums, co-ops and townhouses fell 5.1 percent in June, an industry trade group said Thursday. The National Association of Realtors said sales dropped to a seasonally adjusted annual rate of 5.37 million units, down from 5.66 million units sold in May.
In spite of the month-to-month drop, sales were 9.8 percent higher than June 2009, when the annual rate stood at 4.89 million units.
Of note, June 30 was the deadline for closing deals in order to qualify for an $8,000 first-time buyer federal tax credit that has been credited with giving the sagging housing market a boost.
"June home sales still reflect a tax credit impact," NAR Chief Economist Lawrence Yun said in a statement.
"Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge," he said.
"Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels," he added.
In June, the national median price for homes in the monthly survey was $183,700, including all housing types.
The median price is 1 percent higher than a year ago, NAR said.
