Sales of existing homes dropped 5.1 percent in June to 5.37 million units from 5.66 million in May, but was still 9.8 percent higher than the 4.89 million units sold in June of 2009. The national median existing home sale price was $183,700 in June 2010up 1.0 percent from 2009.
The market has shown an understandable upswing over the last year as buyers responded to the Federal Tax Credit. The closing sales numbers for the last two months after the home buyer tax credit expired have been significantly lower compared to before. Only when the unemployment numbers drop will home sales return to sustainable healthy levels and that's providing mortgage interest rates stay low.
Housing inventory rose 2.5 percent at the end of June to 3.99 million existing homes for sale, representing 8.9 month supply at the current sales pace, up from 8.3 month supply in May. Distressed homes accounted for 32 percent of all sales in June.
Closer to home in the Midwest, sales dropped 7.5 percent to 1.23 million, but were 11.8 percent higher than 2009. The median sale price of an existing home in the Midwest in June was $155,900 almost the same as 2009.