Home Resales Highest Since October

Washington, DC, July 23, 2009--Resales of single-family homes and condos increased 3.6% in June to an annual rate of 4.89 million, the highest level since last October, the National Association of Realtors said Thursday.

Resales have risen for three straight months. The housing market appears to be healing, said Lawrence Yun, the NAR chief economist.

The increase was higher than expected. Economists surveyed expected sales to rise to 4.85 million.

Inventories of unsold homes are still elevated and putting pressure on prices. The inventory of unsold homes on the market fell to a 9.4 month supply at the June sales pace, down from 9.8 months in May.

Yun said that inventories would have to be at a seven month supply to get price stabilization. The median sales prices fell 15.4% in the past year to $181,800.

Resale activity is concentrated in lower-priced home as a result of tax incentives, analysts said. Distressed properties accounted for 31% of sales in June.