Sales of existing homes fell 2.6 percent last month and brought the supply of unsold houses to its second highest level in 24 years, according to a National Association of Realtors report Thursday.
The depressed June numbers, which followed a brief rebound inMay, brought sales of existing homes down 15.5 percent from where they were in June 2007 and to a 10-year low. The median home sale price dropped 6.1 percent from a year ago.
The June numbers received a cold welcome on Wall Street on Thursday, where the markets plunged in response to the news. The drop in home sales was more than double what economists had expected.
The Washington area real estate market, long thought to be mostly sheltered from housing turbulence because of its steady job market, weathered June somewhat better than the rest of the nation.
In the District of Columbia, sales of single-family homes rose 8.5 percent from May to June, but were still down 23 percent for the year, local Realtor figures show. Condo sales were down 4.6 percent for the month and down 35 percent in 2008.
In Montgomery County, single-family home sales were up 22 percent for the month, but remained 27 percent down for the year. Condos were down 5.5 percent for the month and 42 percent for the year.
In the Northern Virginia area comprised of Alexandria, Falls Church, Herndon, Vienna, Clifton and Arlington and Fairfax counties, home sales were up 10 percent for the month but down 20 percent for the year.
Local homeowner Rob Calligaro said he listed his three-bedroom Alexandria condo town house in March for $524,000 and sold it about a month later for $516,000.
“There are definitely people out looking,” Calligaro said. “Some of the people were from out of state and getting transferred here. But in contrast to what it had been, there’s no comparison.”
In 2005, his D.C. home enjoyed a bidding war during its first open house weekend and sold for $500,000 more than he bought it for in 1995, he said.
Two other homes in his Alexandria development took between two and three months to sell this year, he said.
Nationally, potential homebuyers are hesitant to take the plunge lest the market plummet further.
“A recent online survey of Realtors shows nearly a quarter of potential home buyers are waiting on the sidelines,” NAR President Richard Gaylord said.
Prices won’t recover until buyers absorb the 11 months supply of homes languishing on the market, economists said.
