Existing home sales dropped by 5.1% in June

Existing home sales went down by 5.1% in June, for the second month in a row.

The annual equivalent rate in the month of June was around 5.37 million.

This is not as low as the same time last year, but it still is very low compared to the 7 million we used to have during the boom.

The reason is quite easy to explain. Until April, there was a temporary tax credit of $8000 for house purchases and a lot of buyers hurried with their acquisitions in order to get them done right before the deadline.

After the deadline passed, the home owners that have managed to beat it still have until September for all the formalities.

Sales are expected to go even lower because of this in the months to come.