BLOOMBERG CALL IT: HOMES SALES ROSE IN JUNE
by Mark Wellborn
Bloomberg was correct. The National Association of Realtors announced that existing home sales in the U.S. rose 3.6 percent in June to an annualized rate of 4.89 million units, an increase of 170,000 units over May (4.72 million units).
We reported earlier this week on a Bloomberg survey that predicted purchases of previously-owned homes would climb to an annual rate of 4.83 million in June, the highest level since October of last year. The financial reporting service missed the mark slightly, but was not too far off.
The question that is really on everyone’s mind is will Bloomberg’s other prediction prove prophetic: These numbers indicate that the end of the recession is in sight.
Separately, the NAR reiterated its stance that new appraisal rules are hampering the market’s recovery. NAR chief economist and spokesman Lawrence Yun was quoted in the press release:
“Despite the rise in closed transactions, many Realtors are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year…In many cases, normal homes are being compared with distressed homes sold at a discount, which often are in subpar condition — this is causing real harm to both buyers and sellers.”
According to NAR’s data, distressed homes accounted for fully 31 percent of sales last month.