Home sales flattish, inventory building

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News item: The Realtors’ report on existing home sales for July is out, and here are the numbers: ‘sales slipped 0.2 percent to a seasonally adjusted annual rate of 5.75 million units in July from an upwardly revised pace of 5.76 million in June, and are 9.0 percent below the 6.32 million-unit level in July 2006.’

Median prices, at $228,000 and change, were down 0.6% from year-ago levels.

Inventory: ‘Total housing inventory rose 5.1 percent at the end of June to 4.59 million existing homes available for sale, which represents a 9.6-month supply at the current sales pace, up from an upwardly revised 9.1-month supply in June.’

Our take: Rising inventory is probably the headline here; 4.6 million homes for sale is a lot of homes. Interesting analysis, as always, from NAR economist Lawrence Yun: “Home sales probably would be rising in the absence of the mortgage liquidity issues of the past two months,” he said.

Well, yes, of course. If only lenders would resume giving 100% financing to everyone with a pulse, sales would be stronger. While we’re at it, If only I could hit the ball long and straight, and could putt, I would be a scratch golfer.

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