Existing-home sales decline, prices continue rise

July 23rd, 2012

Existing-home sales dropped in June.

The National Association of Realtors reported that due to a tight inventory, home sales fell during June. However, this may not deter transferees, as the market showed strength by rising home prices.

Existing-home sales fell 5.4 percent during the month to a rate of 4.37 million, the report showed. The rate during the previous month was 4.62 million. Even with the decline, the figure was still 4.5 percent above the same point in 2011.

Home prices during June reached a median of $189,400, which was 7.9 percent higher than the same point in 2011, according to NAR. The rise was the fourth consecutive annual price jump.

"Despite the frictions related to obtaining mortgages, buyer interest remains solid," said Lawrence Yun, chief economist for NAR. "But inventory continues to shrink and that is limiting buying opportunities. This, in turn, is pushing up home prices in many markets."

Corporate transferees may be able to mitigate the effects of the market by speaking with their mortgage consultant about obtaining a home loan for their new residence.