Tuesday, December 30, 2008

Home Appreciation Slows to Lowest Rate in Nine Years

Existing home sales fell 1.3% in June, according to the National Association of Realtors. This marks the eighth decline in 10 months.

June's average price of a sold home increased 0.9% from the year prior, to $231,000. This is the smallest year-over-year price increase since May of 1995.

Regionally, June's sales were down 3.5% in the Northeast and 2.3% in the South, while sales in the West and Midwest remained steady.

The supply of unsold homes has risen to a record 3.725 million units. The inventory is a 6.8 month supply at June's sales rate -- the greatest amount of time in over eight years.

Single-family home sales were down 0.9% to a seasonally adjusted rate of 5.81 million units, whereas sales of condominiums fell 5.5% in June.

David Lereah, NAR chief economist, says that home sales are beginning to level out after five years of record sales. With interest rates increasing, housing sales have slowed.

Lereah suggests that there are two markets seen in the industry right now -- one where red-hot markets are cooling, and the other where moderately priced areas are starting to heat up.

The NAR reports that sales have decreased in New York, Boston, Minneapolis and Chicago, but have increased in Syracuse and Pittsburg.

Overall, sales are increasing in Texas, Georgia, North Carolina and Tennessee, while decreasing sales are seen in Maryland and Virginia.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

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