I was interviewed by our local CBS affiliate a couple of weeks ago. They were doing a story on the slowing housing market. There was only anecdotal evidence of the slow-down. My view was that the current slow-down was the backlash from the Federal Tax Credits. I coined it, "Cash for Clunkers Comes to the Housing Market."
This week the National Association of REALTORS® (NAR) released the July sales figures. NAR states, "Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009."
A couple of their charts say it all. The first is the Seasonally Adjusted Annual Rate:
The second is the Months of Supply:
If my "Cash for Clunkers" analogy is correct, we will see prices continue to fall before they start rebounding.
While these are national numbers, it will be interesting to see how local markets are impacted as data become available.
Tom Branch and Gina Branch, The Branch Team with RE/MAX Dallas Suburbs, service the greater North Dallas suburbs including Dallas, Plano, Allen, McKinney, Frisco, Lewisville, and Carrollton. While Gina concentrates on traditional listings and buyer/tenant representation, Tom specializes in assisting distressed homeowners to avoid foreclosure. Tom and Gina have published two books (Achieving Rock Star Status and The Field Guide to Short Sales) and are available for speaking engagements in the greater Dallas - Fort Worth Metroplex. Subscribe to The Branch Team Blog.
Copyright 2009-2012 - The Branch Team
The Branch Team - Texas Real Estate Broker 547597 | Team Members are Texas Licensed Real Estate Professionals
Tom Branch - National Mortgage Licensing System 341963
Important Notice: The Branch Team with RE/MAX Dallas Suburbs is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental.
