Existing Home Sales Decline 1.3%

July 25, 2006 |

The national numbers for existing home sales in June were recently released by the National Association of REALTORS.  Existing home sales fell 1.3% in June to 6.62 million units. 

According to NAR’s chief economist, David Lereah, this isn’t unexpected:

“Over the last three months home sales have held in a narrow range, easing to a level that is near our annual projection, which tells us the market is stabilizing,” he said. “At the same time, sellers have recognized that they need to be more competitive in their pricing given the rise in housing inventories. Home prices are only a little higher than a year ago.”

Appreciation is definitely lower across the country, as the national median home price was only up 0.9% when compared to June of last year. 

For more articles on the subject, check out these links:

MSNBC; FOX News; TheStreet.com; Washington Post; USA Today

The Charlottesville Area real estate market has not escaped the high inventories, decreased transactions, and low appreciation.  If you have been reading my statistical releases, you know that the Charlottesville MSA has been well behind its pace of last year.  According to the Charlottesville Area Association of REALTORS MLS statistics, the Charlottesville MSA is currently experiencing a 4.9 month inventory as of June, compared to a 2.47 month inventory at the same time last year. Average Days on Market is at its lowest point all year, 52 days as of June.  Although, that statistic is a bit skewed by many of the condos that were pre-sold in the month of June.  Until June, the average DOM was as low as 61 days and as high as 74 days.   

The moral of the story is that the market in 2006 is slower than the market in 2005, so make sure that you act accordingly, whether buying or selling. 

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Posted by Daniel | Filed Under Albemarle, Charlottesville, Fluvanna, Greene, Market Statistics, News 

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