Existing home sales still getting a tax credit boost

Existing home sales were up 9.8 percent from a year ago, but down from May, according to numbers released by the National Association of Realtors this morning.

Lawrence Yun, NAR chief economist, said the market shows uncharacteristic yet understandable swings as buyers responded to the tax credits. “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months,” he said.

“Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels.”

Distressed sales represented about a third of all sales, basically unchanged from a year ago, but inventory continues to rise. There's about an 8.9 month supply of homes on the market right now, down from the worst of the crash, but certainly still a buyer's market.

Every region except the West (sales up only 0.9 percent) saw double-digit sales increases from a year ago.

Unlike new home sales, we're still not seeing the post-credit crash because existing sales are reported when the deal closes and new sales are reported when the contract is signed.