Condo, Co-Op Sales Up 14% Since May; Median Condo Price in June Down 18.9% From Year Ago

By Anuradha Kher, Online News EditorWashington, D.C.–Existing condominium and co-op sales jumped 14 percent to a seasonally adjusted annual rate of 570,000 units in June from 500,000 in May, but they are 3.1 percent below the 588,000-unit level in June 2008, according to the latest report from the National Association of Realtors (NAR). Overall sales, which includes single-family, townhomes, condominiums and co-ops, have also increased 3.6 percent to a seasonally adjusted annual rate1 of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2 percent lower than the 4.90 million-unit level in June 2008. Lawrence Yun, chief economist at NAR, is hopeful about the gain. “The increase in existing-home sales occurred in all major regions of the country,” he says. “We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions.” The median existing condo price was $183,300 in June, down 18.9 percent from a year ago. The national median existing-home price for all housing types was $181,800 in June, which is 15.4 percent below June 2008.  Distressed properties, which accounted for 31 percent of sales in June, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. “Despite the rise in closed transactions, many realtors are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year,” he adds.Total housing inventory at the end of June fell 0.7 percent to 3.82 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace, down from a 9.8-month supply in May. Raw inventory totals are 14.9 percent below a year ago.  NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are very good opportunities.  “Despite some of the challenges, the housing market continues to demonstrate signs of recovery,” he says. “The temporary first-time buyer tax credit is clearly helping people make a decision and is contributing to the overall stimulus impact, but since it’s taking longer to close transactions, many would-be beneficiaries may not be able to take advantage of the credit before the Dec. 1 expiration date.”