June 2010 Housing Stats

The June housing statistics were released today (the national numbers are provided by the National Association of Realtors while the Texas numbers are from The Real Estate Center at Texas A&M University).

Nationally, the number of homes sold compared to May 2010 declined 5.1%. On a year-over-year basis, the number of homes sold in June 2010 increased by 9.8% over June 2009. The year-over-year increase is because of the buyer tax credits that ended in April, but houses under contract have until September 30 to close (this was extended from the original June 30th deadline). It will be interesting to see just how low the July numbers are when they are reported next month because we borrowed so many buyers from later months because of the tax credit. 43% of the buyers in June were first-time buyers (13% were investors and 44% were repeat). Distressed properties (foreclosures and short sales) accounted for 32% of the national sales in June (up from 31% the previous month – June 2009 was also at 31%). 76% of the sales were financed with a mortgage.

The Austin numbers look good. Compared to June 2009, the number of homes sold was down 2.5%. This is the first time in nine months that this year-over-year comparison has declined. I expect that the next few months will also show declines. Prices, however, were up (see chart below). The number of contracts being accepted on homes continues to be down as we experience the aftermath of the buyer tax credits. Because the tax credits essentially moved the housing calendar up a few months this year, it is hard to make accurate comparisons to prior years. We are at an interesting point in Austin right now and we’ll have to see if we continue to slide down or stabilize again. I think by this time next month, we’ll have a better idea.