The National Association of REALTORS(r) releases month-to-month housing numbers from across the country. As predicted, due to the acceleration of the markets because of the tax credit deadline in April, the July numbers for volume of sales of existing homes were low. Very low. In fact, historically low.
Here is the original press release for reference.
Should we all be freaking out?
Honestly, I don't think so. First, consider that real estate is a truly cyclical business. Ask any real estate agent you know and I'll bet they'll back me up on this. Second, everything can be looked at in context.
For clarity, and because real estate markets really are local, I have drilled down the numbers to the 20001 zip code. The volume reflects the total dollar volume of transferred sales. The comparison is to the same month of the previous year.
Sales volume up 16.67%
Average Sold Price up 7.69%
Sales volume down 1.10% (from 2009-$9,649,800 to 2010-$9,543,370)
Average Sold Price up 7.14%
Sales volume up 97.08% (Yes, really. From 2009-$6,940,770. to 2010-$13,678,890.)
Average sold price up 17.02%
Sales volume up 73.49% (2009-$14,958,443. to 2010-$25,950,725.)
Average sold price up 21.74%
Sales volume up 90.56% (2009-$16,481,150.-2010-$31,405,841.)
Average sold price up 11.79%
Sales Volume down 8.16% (Tax Credit deadline for contract ratification was 4/30)
Average sold price up 4.08%
Sales Volume down 20.50%
Average sold price up 24.21%