Housing shortageStatistics

Home Sales Down for Fourth Straight Month

Nationwide, July saw the sale of existing homes decrease for the fourth straight month. Some Wall Street Journal economists had predicted an increase of 0.6% from June to July due to what looked like a recovering market after the recession. It actually fell 0.7%. Rising house prices are pricing people out of affordable housing rather than being a predictor of recovery. Indeed, the median house price has risen 4.5% while average wages have risen only 2.7%. Interest rates are also up 0.5% since the beginning of the year. Curiously, sales rate of some of the most affordable housing at the bottom of the price spectrum, those under $100,000, decreased 11% since July of last year, while the rate of sale of those over $1 million increased 16%.

Of course, with home prices as high as they are in California, the numbers are going to be different than the nationwide average. A price over $1 million is much easier to find than a price under $100,000, and accordingly, July was only the third consecutive month of overall decrease in sales of existing homes, not the fourth.


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