September 2010 / ©2010 NATIONAL ASSOCIATION OF REALTORS®
Existing-home sales fell in July to a seasonally adjusted annual rate of 3.83 million units – a 27.2% monthly decline and 25.5% below the pace in July of 2009. The decline was largely due to the expiration of the homebuyer tax credit, as well as ongoing concerns about the job market. Home prices rose — the national median existing-home price for all housing types was $182,600 in July, up 0.7% from a year ago.

New home sales posted a seasonally adjusted annual rate of 276,000 units in July – 12.4% off the previous month’s pace and 32.4% below the pace in July of 2009. The inventory of new homes available for sale at the end of July was at a 9.1 months’ supply at the current sales pace.

Housing starts rose 1.7% in July, posting a seasonally adjusted annual rate of 546,000 units. Starts were still off from year ago levels. Building permits, generally a reliable
indicator of future starts, declined slightly to 565,000 units – 2.0% down from June’s pace and 3.7% below the July 2009 level.

Housing affordability continues at very healthy levels. NAR’s Housing Affordability Index posted a reading of 161.8 in July – up from 159.5 in June and 158.4 a year ago.
The rise in affordability was due primarily to a decline in the average mortgage interest rate as well as qualifying income.

Mortgage rates The average 30 year fixed-rate in August was 4.43% — a new record low since Freddie Mac began its Primary Mortgage Market Survey in April of 1971. The weak global economy is holding mortgage rates low. Even so, low rates have done little to help the struggling housing market.

Employment While overall payroll employment fell for a third straight month due to government layoffs of temporary Census workers, private non-farm employment experienced a second month of increases as private service jobs rose by 67,000 after a 70,000 increase in July. The largest increase was in education and health services; jobs in professional and business services also increased by 20,000 after falling 3,000 in July. Average hourly earnings improved 0.3 percent from 0.2 percent in July.

Economic growth The U.S. economy grew by an annual rate of 1.6% in the second quarter of 2010. This is the second estimate of growth in real gross domestic product
based on more complete data. In the first quarter of this year, real GDP grew 3.7%. The increase in real GDP in the second quarter primarily reflected positive contributions from nonresidential fixed investment, consumer spending, increases in exports, federal government spending, private inventory investment, and residential
fixed investment.

Monthly Indicator Recent Figures Forecast Likely Direction Over the Next Six Months:

July 2010 3,830

June 2010 5,260

July 2009 5,140

July 2010 276

June 2010 315

July 2009 408

July 2010 546

June 2010 537

July 2009 587

July 2010 161.8

June 2010 159.5

July 2009 158.4

Aug 2010 4.43%

July 2010 4.56%

Aug 2009 5.19%

Aug 2010 -54

July 2010 -54

12-month total: +229

2010:II +1.6%

2010:I +3.7%

2009:II -0.7%

Notes: All rates are seasonally adjusted. Existing home sales, new home sales and housing starts are shown in thousands. Employment growth is shown as month-to-month change in
thousands. Sources: NAR, Bureau of the Census, Bureau of Labor Statistics and Freddie Mac. This report reflects data as of September 3, 2010. Compiled by Wannasiri Chompoopet, Ken
Fears and Lawrence Yun. REAL ESTATE MONITOR