Lereah Changing Tune
From Marketwatch: Existing home sales fall 1.3% to 6.62 million:
Inventories at 9-year high; price gains at a 10-year low
The report shows a continued weakening in the housing market, with inventories up sharply while prices are softening.
The inventory of unsold homes rose to a record 3.725 million, a 6.8 month supply at the June sales rate, the highest since July 1997.
The median price has risen 0.9% in the past year to $231,000. It's the weakest price growth in 10 years.
Sales of existing homes are down 8.9% in the past year.
"I hope we are hitting bottom," said David Lereah, chief economist for the private real estate trade group, which is predicting sales of about 6.60 million this year.
Sales were flat in the West and Midwest. Sales fell 2.3% in the South and fell 3.5% in the Northeast.
Single-family sales fell 0.9% to 5.81 million from 5.86 million. Condo sales fell 5.5% to 805,000.
Median prices of single-family homes are up 1.1% in the past year, while condo prices are down 2.1%.
Sellers should expect lower prices, Lereah said, adding that he wouldn't be surprised to see single-family home prices fall nationally.