Existing-Home Sales Continued to Trend Up in Second Quarter

The National Association of Realtors [NAR] is out with some details on second quarter existing home sales. Here is a recap:

  • Sales were up 3.8% Q2 over Q1.
  • Unit sales were 4.76 million units in Q2 versus 4.58 million in Q1.
  • Q2 2009 is 2.9% below Q2 2008.
  • Foreclosures accounted for 36% of sales.
  • Median prices in Q2 versus a year ago were down 9.7% in the Northeast, down 8.6% in the Midwest, down 10.3% in the South and down 26.6% in the West.

I’d would say that you can probably glean a slowly improving market out of the numbers but one that’s being driven by sales at the low end as first time homebuyers and investors chase bargains. Hopefully, the trend morphs into a broader based recovery but at this point in time the market can’t be described as healthy. In some areas investors make up a third or more of all buyers. Sooner or later they run out of either interest or supply at prices that make sense and the market loses one of it major legs of support.

About Tom Lindmark 401 Articles

I’m not sure that credentials mean much when it comes to writing about things but people seem to want to see them, so briefly here are mine. I have an undergraduate degree in economics from an undistinguished Midwestern university and masters in international business from an equally undistinguished Southwestern University. I spent a number of years working for large banks lending to lots of different industries. For the past few years, I’ve been engaged in real estate finance – primarily for commercial projects. Like a lot of other finance guys, I’m looking for a job at this point in time.

Given all of that, I suggest that you take what I write with the appropriate grain of salt. I try and figure out what’s behind the news but suspect that I’m often delusional. Nevertheless, I keep throwing things out there and occasionally it sticks. I do read the comments that readers leave and to the extent I can reply to them. I also reply to all emails so feel free to contact me if you want to discuss something at more length. Oh, I also have a very thick skin, so if you disagree feel free to say so.

Enjoy what I write and let me know when I’m off base – I probably won’t agree with you but don’t be shy.

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