Home Sales Slow... Again!

Sales were off 0.3 percent in May and hit their lowest level since June 2003 when the pace was 5.94 million units. This is good news for buyers. The inventory of homes for sale rose 5% to 4.43 million units at the end of May which represents nearly 9 months' supply at the current sales pace. That is the highest months' supply since June 1992. May saw the 10th straight month in which prices dropped from year-ago levels, with the national median price down 2.1 percent to $223,700. Past reports indicate that 2007 will be the bottom of the housing slump and sales will return to normal levels in mid-2008.

How does this effect a first-time homebuyer in St. Louis? As with most of the country, St. Louis home sales are affected by the massive number of new homes being built in the St. Louis area. Drive anywhere; St. Charles, Wildwood, Oakville, even within the St. Louis city limits, you'll find new construction. In St. Louis, we have the added issue of loft spaces being built in and around downtown St. Louis. For buyers, the selection has never been greater. For sellers, it's a knock down, drag out fist fight with their competition. This is why you're seeing more homes stay on the market for a longer time. That being said, it's a great time to buy a home; more selection and less pressure to make a decision. I will say this though: The good properties will still go fast. The properties that may need work or don't show as well will sit.

Even if you're just thinking about buying a home, it's never to early to start learning the process and understanding the market. My home buying program free -- no transaction fees! Contact me to receive MLS listings sent directly to your e-mail inbox. E-mail me at: jeff@naertrealty.com