You have just got to wonder where the relief will come from for the housing markets. It is not with rates, it is not with easy loans and unless the govy decides to throw the homebuilders and buyers another bone there surely is going to be another leg down in pricing to come.
Actually, either way there will be another wave of pricing weakness as the months of inventory for existing homes rises past 12.
The biggest slowdown in sales (existing homes) came from the Midwest which had a 35% drop in July. This compares to a 7.5% drop in June. At the same time, as the Western region saw a slight rise in the average price (+$8,000) per sale, the Midwest saw a more modest increase (+$500) and the South was the only region to record a lower selling price (-$3,000).
Perhaps this is a sign that the markets with the greatest overbuild of lower end housing, such as the condos in the South, are having a more difficult time keeping up pricing as buyers have knowledge of the excess. In the Midwest, it appears to be a case of going where the jobs are and leaving where they are not. It will be surprising if prices hold up for much longer in that region. (Caveat – Farming areas will continue to hold value, in the Midwest. It is the manufacturing states that will have the greatest challenges moving ahead as jobs remain scarce)