U.S. home sales slide on canceled contracts

TRD New York /
Jul.July 20, 2011 01:04 PM

Sales of existing U.S. homes slid last month after a sudden surge in canceled contracts, according to data released by the National Association of Realtors today.

Lawrence Yun, chief economist for the trade organization, said he wasn’t sure of the reason for the cancellations, but said the tight credit market, low appraisals, uncertainty about the economy and the outcome of the federal debt ceiling debate may have contributed to the “unusual spike.” A survey of the trade organization’s members indicated that 16 percent of respondents had a sales contract canceled for a single-family home, townhouse, condominium or co-op in June, up from 4 percent who said that had happened in May.

Those failed transactions resulted in a 0.8 percent decline in the nationwide home sales pace last month, to an annual rate of 4.77 million. That rate is also 8.8 percent below that of June 2010 — the deadline for closings under the federal homebuyer tax credit program — when 5.23 million existing U.S. homes were selling per year.

“Pending home sales were down in April but up in May, so we may be seeing some of that mix in closed sales for June,” Yun added.

Meanwhile, the median sales price for existing homes sold last month rose slightly — by 0.8 percent — on a year-over-year basis, and stood at $184,300 as of the end of June. — Sarabeth Sanders


Related Articles

arrow_forward_ios
Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

US home sales slide again in June as prices hit all-time high

US home sales slide again in June as prices hit all-time high

(Credit: iStock)

US existing home sales bounce back in May as spring buying season heats up: report

Propy CEO Natalia Karayaneva (Credit: iStock)

NAR’s venture capital arm is now a blockchain investor

President Donald Trump addresses the National Association of Realtors on Friday (Credit: Getty Images)

“I feel like home”: Trump touts economy, gushes over agents at NAR conference

NAR CEO Bob Goldberg (left) and Crexi CEO Michael DeGiorgio

NAR inks partnership with Crexi

Is the tax overhaul law impacting real estate?

Is the tax overhaul law impacting real estate?

National Cheat Sheet: Blackstone Group plans to become a corporation, NAR hit with new antitrust suit  … & more

National Cheat Sheet: Blackstone Group plans to become a corporation, NAR hit with new antitrust suit … & more

arrow_forward_ios