Home sales dropped in 2Q

The National Association of Realtors (also known as the infamous NAR) reported that existing home sales fell 10.8% in the second quarter of 2007. Homes sold at an annualized rate of 5.91 million, down from last year’s 6.63 million. The median home price dropped 1.5% to $223,800. However, amid all the news, NAR officials saw reasons for confidence: median prices are going up in 97 metro areas, as compared to 83 in the first quarter. Lawrence Yun, senior economist for the NAR, said that “Recent mortgage disruptions will hold back sales temporarily, but the fundamental momentum clearly suggests stabilizing price trends”. He also didn’t fail to mention that “Although home prices are relatively flat, more metro areas are showing price gains with general improvement since bottoming-out in the fourth quarter of 2006”. So the market bottomed out in 4Q after all? Let’s hope he’s right. I thought we’d all seen evidence to the contrary.