The National Association of Realtors (NAR) reported today that home resales slid to a 4.86 million annual rate, a 2.6% decrease from May's unrevised 4.99 million annual pace. The median home price was $215,100 in June, down 6.1% from $229,000 in June 2007. The median price in May this year was $207,900.
High inventories have exerted downward pressure on prices. Falling prices have kept would-be buyers from signing off on property as they wait for a better deal.
The NAR says timing the market is tricky. "Home buyers should always have a long-term view to build wealth," NAR President Richard Gaylord said.
Lenders have tightened their standards on home loans, contributing to the credit crunch that is restraining the U.S. economy. Those tighter standards have priced marginal buyers out of the market and made purchasing more difficult and costly for prime borrowers.