Home sales fell in June, according to new numbers from the National Association of Realtors. Sales of existing homes dropped 5.4 percent from the month before and were 14.2 percent below where they were last year at the same time. The decline is the latest sign that the housing market is starting to slow down.
But while falling sales are evidence that buyer demand has begun to cool off, there are also signs that the market remains hot. For example, the NAR's report found that home prices saw a double-digit, year-over-year increase in June. Also, the typical property was on the market just 14 days and nearly 90 percent of homes sold during the month were on the market less than a month. In short, the market is adjusting but the transition has only just begun.
Lawrence Yun, NAR's chief economist, says the data is mixed. “Finally, there are more homes on the market,” Yun said. “Interestingly though, the record-low pace of days on market implies a fuzzier picture on home prices. Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
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