NAR: Resales Dipped in 2Q

The sales of existing homes, including single-family homes and condominiums, fell 0.8% to a seasonally adjusted annual rate of 4.91 million units in the second quarter and were down 16.3% from 5.87 million a year earlier, according to the National Association of Realtors. The NAR stressed, however, that resales rose in 13 states, largely as a result of buyer response to discounted home prices. Out of 150 metropolitan statistical areas, 115 recorded declines in median single-family resale prices from levels recorded a year earlier. The median resale price stood at $206,500, down 7.6% from $223,500 in the second quarter of 2007. NAR president Richard Gaylord, a broker with RE/Max Real Estate Specialists in Long Beach, Calif., said foreclosures are distorting the price data. "In many areas with large concentrations of foreclosure sales, homes are being purchased below replacement-cost values," Mr. Gaylord said. ".... Once the inventory is drawn down, price pressure will return because the costs of construction are rising -- today's buyers are very well positioned to build wealth over time." The NAR can be found online at http://www.realtor.org.