REAL Trends, the Denver-based national provider of residential real estate data, reported today that closed home sales were down more than 16 percent in June versus one year earlier. However, despite the decreases the organization sees some positive signs.
“Overall, we’ve seen marked improvement in every region of the country over the previous month,” said Steve Murray, editor of REAL Trends. “By no means is this reason to celebrate, but there are telltale signs that could indicate reasons for some optimism. Of particular interest was the increase in closed sales in California, up 6.6% versus June 2007, and Nevada, where home sales were up 3.6% over a year ago. With these markets firming, there are signs that the worst may be in the past.”
The South improved most with closed sales falling only 18.2% from June 2007 versus the 32.1% drop from May 2007 to May 2008. In the West, closed sales fell 10.1% from June 2007 to June 2008 versus the May report (where closed sales fell 28.2% in May 2008 versus May 2007). Although prices were firmer in the other three regions, the West continues to see softness in pricing.
According to the REAL Trends, closed sales were down 16.4 percent nationally in June versus the same period a year ago. In May, home sales were down 20.9 percent.
Regionally, the Northeast experienced the largest decrease in home sales, which dropped 19.9 percent from June 2007, while the West experienced the largest year-over-year price decline: 17.2 percent.
Nationally, the average price of a home fell 7.9 percent in June versus one-year prior. In May, home prices were down 7.7 percent versus 2007.
“June’s results indicate closed sales may be beginning to firm in every region,” Murray said. With the improvement in California and Nevada, noted above, along with increased sales in Nebraska, North Dakota and Alaska, the housing market is showing signs of firming.”
“It’s possible that we’re beginning to see the housing market climb out of the trough it has been in for the last two years. In areas where prices have slipped most -- California and Nevada -- we are also seeing the signs of the return of first-time buyers and investors,” he added. “In markets where prices have already softened considerably, sales are much stronger than a year ago.”
Housing Market Report
June 2008 versus June 2007
Closed Sales AVG Price
National - 16.4% - 7.9%
Northeast - 19.9% - 3.0%
South - 18.2% - 4.5%
Midwest - 18.2% - 4.8%
West - 10.1% - 17.2%
Housing Market Report – May 2008 versus May 2007
Closed Sales AVG Price
National - 20.9% - 7.7%
Northeast - 28.2% - 6.8%
South - 32.1% - 4.6%
Midwest - 23.3% - 6.8%
West - 20.1% - 13.3%
About the REAL Trends Market Report
REAL Trends’ analysis of closed home sales data is pulled from real estate brokers representing more than 35 percent of all homes sales throughout the country. The REAL Trends Housing Market Report collects actual closed housing sales data each month directly from brokerage firms. With all 50 states covered and results from thousands of brokerage firms in every metropolitan area, the sample size and geographical reach of the study exceeds virtually every other report issued about the housing market.