Existing home sales dropped 10.7% from last year and 2.2% from a revised July 2008.
Prices for homes dropped a record 9.5% from last year. Regionally, the price drop in the West was 23.9%!
With lower prices, the inventory dropped to 10.4 months which was at 11.1 just two months ago.
“However, home sales will be constrained without a freer flow of credit into the mortgage market. The faster that happens, the sooner we’ll see a broad stabilization in home prices that in turn will help the economy recover,” Yun said. “Historically, housing has led the nation out of economic doldrums – there will not be an economic recovery without a housing recovery.”
Leave it upto morons at NAR to come up with a solution that will screw things up even more. Now that the government has taken over the GSEs, looks like the NAR want the GSEs to return to NINJA loans. The only way to get out of this mess quickly is for the prices to drop so more people can afford houses - not over leveraging.
And while we have had lower mortgage rates, it is not certain they will remain low. Especially with the bailout package which may lead to hyperinflation.
“The median home price reflects more transactions related to subprime loans,” Yun said. “Fewer than 10 percent of homeowners have subprime loans, but these mortgages are accounting for a disproportionately high share of sales in the current market. On the other hand, areas that have had sharp price cuts are seeing a turnaround in sales, which are rising very fast now in parts of California, Florida and Nevada.”
Yun is complaining about Short sales lowering the price, but does not mention it when those short sales lead to an increase in home sales.
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