Existing home sales fell in the second quarter of 2006, despite 20 states showing increases in sales activity. According to the National Association of Realtors (NAR), the second quarter experienced a 7% decrease in sales, a seasonally-adjusted annual rate drop to 6.69 million units when compared to the second quarter of 2005, when a record 7.19 million units sold. However, in the past year, several states have seen surprisingly strong increases in existing-home sales. Alaska showed the largest quarterly rise in sales with a 48.6% increase in existing-home sales when compared to the second quarter of 2005. Arkansas had the second strongest gain for the quarter, with resale pace increasing 17.9% from the previous year. Texas came in third with an 11.3% over the same period. Twenty-eight states and Washington D.C. saw declines in sales. NAR's chief economist, David Lereah, said that the two sets of market conditions are revealing a mixed market. "When you look at states with high housing costs or that have experienced a prolonged period of rapid price gains, you typically see slower home sales," said Lereah. "By contrast, states with moderately priced areas that have experienced healthy job creation are seeing sales gains -- the economic backdrop remains favorable for the housing market, which is helping home sales to level out." All regional levels reported declines. The South witnessed a decrease of 4.2% from one year ago. The West saw home sales fall 14.7%. The Midwest experienced a decline of 4.7%. The Northeast had sales decrease 5.2%. NAR President Thomas M. Stevens suggests that borrowers take advantage of the decreasing interest rates currently seen. "This is good news for buyers who have been on the sidelines; now there is a window of opportunity in the market," said Stevens. "In most of the country, buyers can take their time to make an informed decision. We advise buyers to consult a professional in negotiating the buying process, and to cautiously review mortgage options -- especially on non-traditional loan products." |
