REAL Trends Housing Market Report – June 2011

June housing sales show modest but continued strengthening

Annualized rate of home sales increases from 4.860 million in May 2011 to 5.369 million in June 2011. Average prices of homes sold in June 2011 decreased 1.0 percent from June of 2010.

July 18, 2011 – The REAL Trends Housing Market Report showed that the combination of new and existing home sales in June 2011 on an annualized basis increased from 4.860 million in May 2011 to 5.369 million in June. However the June 2011 rate declined 9.1 percent from the year ago rate of 5.906 million due to the unfavorable comparison with the ending of the tax credit fueled rate of a year ago.

The average price of homes sold declined for the first time in several months with June 2011 average prices declining 1.0 percent from the year ago rate. This decrease follows on increases in each of the last four months.

Housing unit sales for June 2011 were down 26.3 percent in the Northeast followed by a decrease of 9.3 percent in the Midwest when compared to the year ago sales rate. The West had the best performance where housing unit sales were down only 2.7 percent from June 2010.

Average prices of homes sold in June 2011 decreased 1.0 percent across the country. The Northeast had the largest increase with the average price up 4.3 percent followed by a 3.6 percent increase in the South. The largest decrease in average prices of homes sold occurred in the Midwest where prices were off 3.1 percent from a year ago. The West was down 3.0 percent.
"The June 2011 REAL Trends Housing Report shows that housing sales show surprising strength considering the tough economic climate and comparisons to year ago sales that were significantly boosted by the 2010 tax credit program. A significant part of the decline as measured on a year over year basis is due to the Federal tax credit which significantly raised housing sales in the March through June period of 2010,” said Steve Murray, editor of the REAL Trends Housing Market Report. “The fact that the actual average price of home sales has decreased only slightly in June seems to indicate that the market is absorbing the negative news of increased unemployment and continued increases in distressed properties fairly well.”

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