NAR 2Q 2006 Existing Home Sales

The National Association of Realtor (NAR) released their 2nd Quarter 2006 Existing Home Sales numbers. The NAR proclaimed "Metro Home Prices Transition in Second Quarter" while David Lereah announced "After a full year of double-digit gains in the national median price, the timing is right for a cooling in the rate of growth – we are presently experiencing a soft landing in the housing sector."

In their press releasee the NAR started searching for evidence of a 'soft landing' in their data

The association'’s second-quarter metro area single-family home price report, covering changes in 151 metropolitan statistical areas,* shows 37 areas with double-digit annual increases and 26 metros experiencing generally minor price declines - many of the areas with declines are showing weakness in the local labor market.

The national median existing single-family home price was $227,500 in the second quarter, up 3.7 percent from a year earlier when the median price was $219,400.

In real dollars the 3.7% nominal increase in represents basically flat median prices. Regionally, median sales prices of existing homes increased 3.6% in the Northeast, 4.1% in the South, 3.6% in the West and fell 2.0% in the Midwest.

The quarterly report on total state existing-home sales shows that the seasonally adjusted annual rate was 6.69 million units in the second quarter, down 7.0 percent from the record 7.19 million-unit level in the second quarter of 2005.

The number of sales was down in the 2Q 2006 compare to 2Q 2005:

• Northeast: -5.2
• South: -4.2
• West: -14.7
• Midwest: -4.7

Looking at the condo markets the NAR reported that condo prices were much weaker then the single family home market:

Metro area condominium and cooperative prices, covering changes in 57 markets, show the national median existing condo price was $225,800 in the second quarter, down 0.3 percent from a year earlier. Fifteen metros showed double-digit annual gains in the median condo price, and 14 areas had declines.

A full 26 of 57 condo market tracked by NAR, experienced median sales price decreases or increases of less then 3%. In over half of the condo markets tracked by the NAR, the median sales price for condo units is decreasing in real dollars. In general, the condo market is more bubblicious then then the single family housing market.

‘'Pressure On Home Prices Has Evaporated'’: NAR (The Housing Bubble Blog)