July 2010 statistics on home sales or previously owned homes fell by more than 27 percent to a seasonally adjusted 3.83 million, the National Association of Realtors reported on Tuesday.
This represented the largest monthly drop on record, dating back to 1968 and it also included every region of the country.
This followed the expiration of the tax credit, which accounted for a relatively robust spring selling season.
The inventory of homes on the market that remain unsold hit about 4 million in July. This makes a 12.5 month supply when you take into consideration the current sales pace. A healthy inventory is around a 6-month supply.
Any realtor who is telling the truth will say that home sales always come down to price, if the price is right the home will sell. However, buyers and sellers seem to be at a impasse over prices as sellers don?t want to come down on their prices and buyers are reluctant to buy when they believe that the market has yet to hit bottom.
Add into that the fact that financing is getting much more difficult to obtain and the real estate market is looking glum.