Existing Home Sales Beat Forecast in July
Existing home sales rose in July, boosting the annual rate by 3.1% over the June revised pace for existing home sales. However, this news was tempered by the fact that more homes are on the market — and that home prices continue to fall. The Wall Street Journal reports on the trend in existing home sales:
Falling prices are restraining sales, as would-be buyers wait for a better deal instead of signing on the dotted line. High inventories are driving down prices. Prices must fall further for inventories to recede. Analysts say inventories have a good distance to drop for a signal that price deflation is nearing an end.
Despite the sales increase, inventories of homes rose 3.9% at the end of July to a record-high 4.67 million available for sale, which represented an 11.2-month supply at the current sales pace. There was an 11.1-month supply at the end of June.
This means that even though existing home sales were up in July, there is still quite a ways to go before the market hits bottom. Indeed, homes are expected to be on the market for around a year before selling, at the pace that things are moving. This means that it is still very much a buyer’s market — if the buyers were buying.
Looking for a good deal on a home
If you are looking for a home, now may be a good time to consider buying. Home prices may fall further, but trying to time the market can be risky, and may backfire. If you have your finances in order, and a good credit score, you might be in a good place to make a deal. Here are some things to look for when you try to get a good deal on a home:
- Foreclosures (look for those in good shape, though).
- Homes that have been on the market for a while (sellers more willing to deal).
- Motivated sellers (who may need to move quickly, or who are trying to avoid foreclosure with something like a short sale).
Mortgage rates are reasonably low right now, and there are some great deals out there. If you are looking for a home, it may be the time to pounce.
Tags: existing home sales, home prices, home mortgage loan, mortgage rates,
mortgage loan blog, foreclosures, short sale
