Resales Rose 3.1% in July

The sales of existing single-family homes jumped 3.1% in July due to strong sales in markets that previously have seen substantial price declines, such as Ft. Myers, Fla., Sacramento, Calif., and Las Vegas, but nationwide sales are slow and properties listed for sale remain at historic highs. The National Association of Realtors reported that sales of previously owned homes rose to a seasonally adjusted annual rate of 4.39 million in July from 4.26 million in June. Sales were off 12.4% since July 2007, and the median price of a single-family home was down 7.7% since that time, to $210,900. Meanwhile, 3.9 million single-family homes were listed for sale in July, unchanged from the level in June despite the rebound in sales. The Realtors estimate that 33% to 40% of resales involve short sales and foreclosure sales. NAR economists are also hearing that brokers are selling bank-owned properties before posting them on a multiple listing service. These prelisted bank sales don't show up in NAR sales data. In many markets, sales are down 10% to 20% from the levels of a year ago, according to NAR chief economist Lawrence Yun. And he says he is worried that tightening by Fannie Mae and Freddie Mae is crimping sales. For example, the job market is very strong in Texas and home prices are very affordable, which normally translates into increased sales, Mr. Yun told reporters. "But it is not happening in Texas, which is saying there is a credit crunch impacting buyers." The NAR can be found online at http://www.realtor.org.