According to the NAR, existing home sales slipped a mere 0.3% in May, compared to April figures. Year-over-year, however, this is a 10.3% drop. Inventory moved up to the highest level in 15 years, but Quicken Loans’ Bob Walters believes that “we’re still in the early stages of a slow developing market stabilization”. What I heard is that the situation will at the very least remain as bad for several months. I wonder what David Lereah would say at this point if he still worked at the NAR.
And if low sales sound “surprising” to Bob Walters, it doesn’t take a scientist to realize that waiting on the sidelines is quite a wise thing for buyers to do. No one wants to spend their last savings on a house and watch its price drop as the “housing slump” gets worse. Why not wait for a month or two and spend less on the very same purchase, knowing that you won’t lose the equity in your home to market fluctuations?
New homes might sell better than the existing ones because builders are generally more desperate to unload houses and willing to cut prices or offer free additions to buyers. We’ll find out how those are doing soon enough.
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