Home sales were down again in June and prices continued to cool, according to the National Association of Realtors monthly report on sales of existing homes.
The number of homes on the market in the Washington region and across the country continues to climb and price appreciation has slowed significantly. Nationally, home sales dipped 1.3percent.
“Over the last three months, home sales have held in a narrow range, easing to a level that is near our annual projection, which tells us the market is stabilizing,” David Lereah, NAR’s chief economist, said in a press release.
The national median existing home price inched up 0.9 percent in June to $231,000 from $229,000 in June of last year, while inventory levels jumped 39.1 percent. Prices in the Washington region are significantly higher, but appreciation remains on par with the rest of the country. In Northern Virginia, for example, the average price of a home increased 3.97 percent from June 2005 to June 2006. Last year, the average home sold for $556,606, while this month it sold for $578,689.
But the inventory levels in the Washington region rose at an astonishing rate over the last year. While inventory levels nationwide jumped 39.1 percent June-over-June, inventory levels in Northern Virginia alone grew by nearly 200 percent.
“The difference between 39 percent across the country and almost 200 percent in Northern Virginia is more a reflection of how fast the pace of home sales was last year,” said Joe Rominiecki, a spokesman for the Northern Virginia Association of Realtors.
Inventories do appear to be stabilizing in the area. Nationwide, inventory levels rose 3.8 percent during June, while in Northern Virginia they rose just 5.7 percent.
“The inventory was so low in this area because houses were selling so quickly,” Rominiecki said. “It shows that we’ve come back into a normal pace with the rest of the country.”
