Existing-home sales in the West declined 0.9 percent
California Housing Crash, Florida Housing Crash, The Economy, Real Estate June 23rd, 2009
The NAR has just reported the following:
Existing-home sales in the West slipped 0.9 percent to an annual rate of 1.14 million in May, but are 11.8 percent higher than May 2008. The median price in the West was $197,700, down 30.6 percent from a year ago.
For the whole country, these are the numbers
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.4 percent to a seasonally adjusted annual rate1 of 4.77 million units in May from a downwardly revised level of 4.66 million units in April, but remained 3.6 percent below the 4.95 million-unit pace in May 2008.
As we have been saying on this blog for the past two years, the huge wave of foreclosures keeps putting pressure on the housing market. Some parts of California are still way overpriced and home prices will continue to fall until they reflect economic fundamentals. This is just demand and supply, not enough people making enough money to buy homes at these prices.
