First month-over-month increase in unit sales since 2005
For the first time in four years, the number of closed unit sales was up from the same period in the prior year according to REAL Trends, signaling that a floor may have been reached in the housing market.
Nationally, unit sales were up 2.8 percent in July 2009 over July 2008. The Western region again showed the greatest strength with unit sales up 12.3 percent, while the Midwest region showed the greatest improvement with unit sales climbing 3.7 percent over last July. The average home price declined 10.4 percent, a huge improvement over the decline recorded in June 2009 of 16.5 percent. The Western region saw the biggest improvement with prices down 11.3 percent versus the decline of 26.1 percent in the prior month. The Southern region also saw improvement with home prices down only 8.7 percent versus a decline of 9.7 percent in June 2009. The Midwest remained at 10.9 percent while the Northeast continues to see softness in pricing with an average decline of 13.9 percent and increase over the decline of 10.9 percent last month.
“July 2009 is the first month in four years where unit sales increased over the same month a year ago. With June being nearly equal and July showing a small increase in unit sales there is evidence that home sales have found a floor. These results are very encouraging. While home prices continue to decline they are doing so at a slower rate than at any time in the last year, another signal that, at least for the moment, the housing market shows signs of stabilizing,” says Steve Murray, editor of REAL Trends.
“This is clearly the best month of results that we have seen since we first started publishing the REAL Trends Housing Market Report two years ago. While we know that there are substantial challenges ahead, with a predicted rise in foreclosures and continued downward pressure on prices as a result, it would appear that we are closer to the floor of this recession in housing than we have been at any time in the last four years.”
Housing Market Report
July 2009 June 2009
(Versus same month a year ago)
Closed Sales AVG Price Closed Sales AVG Price
+2.8% -10.4% -0.7% -16.5%
-1.2% -13.9% -1.3% -10.9%
-1.7% -8.7% -6.5% -9.7%
+3.7% -10.9% -1.2% -10.9%
+12.3% -11.3% +10.0% -26.1%
Source: REAL Trends