U.S. real estate markets resisted through another severe three months, this time during the spring buying season, the best season of year for housing vendors.
Existing home prices dropped 2.8 percent in the quarter ended June 30 compared to the same period last year, according to a NAR report.
Existing home prices have bounced around a bit the past two years but have wound up in about the same place. The average existing home price for all houses sold during the certain quarter was $171,900, practically matching the level of price of all of 2009 – $172,100.
The number of sales was off 5.4 percent compared to a quarter earlier to an annualized rate of 4.86 million units, and dropped 12.7 percent from the second quarter of 2010.
The existing home sales drop came regardless of some of the best conditions for purchasers ever. Interest rates were very low throughout this period of time. NAR’s Affordability Index – a calculation based on home prices, interest rates and family revenue – was at its third highest level in history, trailing only the previous two quarters.
The weak economy, with a slowdown recovery in hiring, has troubled existing home sales. Another big headwind is the precise underwriting standards lenders are applying to mortgage claimants in the rouse of the financial crisis.
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