National Association of Realtors June Existing Home Sales Report – Possible Double Digit Months of Supply of Inventory This Summer
Posted on | July 21, 2010 | No Comments
The National Association of Realtors will release the June existing home sales report tomorrow with estimates being a decline to 5.3 millions sales in June versus 5.66 in May. As Calculated Risk points out, a very important number in the report will be existing home inventory as inventories have increased year-over-year for the last two months. With another increase we will see double digit month-of-supply very soon with months of supply at 8.5 in May 2010 according to census.gov.
The recent high for months of supply was 12.1 in January of 2009 and there is a very good chance that we could be seeing a double digit months-of-supply again in the coming months if home sales do not improve. Unfortunately, a double digits months-of-supply is very bad news for home prices. With a high amount of supply and very low demand it only takes an economics 101 student to explain that prices are going to decline.
The June existing home sales report from the National Association of Realtors could go a very long way for predicting home prices for the rest of 2010. Here is a chart for 2010 May Home Sales (click to enlarge):
Author: Jesse Wojdylo
Ask Wojdylo Column – Financial, Entertainment and Sports news with a money spin.
Tags: existing home sales > existing home sales report > june existing home sales report > june home sales report > months of supply > national association of realtors > realtors home sales report
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