THIRD STRAIGHT MONTHLY DECLINE

Existing Home Sales Wednesday July 20, 2011

Record High: 7.25 M (09/05)

Percent Change from Record High: -34.2%

Existing home sales slipped 0.8% in June to an annual pace of 4.77 million, compared to expectations for a modest gain to a rate of 4.95 million. This was the third straight monthly decline in home re-sales bringing the pace to the slowest its been since last fall. Home re-sales are now 8.8% below their year ago level in June 2010. It looks like tough lending standards are at the heart of this slump because much of the decline last month was related to a spike in contract cancellations. The composition of sales was roughly in line with recent months with first-time home buyers accounting for 31% of all transactions; all-cash sales were 29% of the total while distressed sales accounted for 30% of all purchases. Regionally, sales were mixed with declines in the Northeast and West and modest gains in the Midwest and South. The inventory of homes available for sale increased 3.3% in June to 3.765 million which represents a 9.5 month-supply on the market at the current sales pace. Prices were higher year-over-year due to fewer distressed sales this year compared to 2010. The median price for an existing home was up 0.8% from June 2010, to $184,300; average prices gained 2.7% to $236,200. Like the broader economy, the housing recovery has hit a soft patch. But economists expect the recent declines in oil prices and stronger job growth in coming months to help boost demand resulting in modestly stronger home sales in the second half of this year.
MILLIONS OF UNITS Forecast: Consensus*: Actual: 5.00 M 4.95 M 4.77 M Monthly Changes Jun-11 4.77 -0.8 -8.8 730 -5.2 1,040 1.0 1,860 0.5 1,140 -1.7 3,765 3.3 -3.1 9.5 184.3 0.8 236.2 2.7 May-11 4.81 -3.8 -15.3 770 -2.5 1,030 -5.5 1,850 -5.1 1,160 -0.9 3,646 -3.0 -6.3 9.1 169.3 -3.0 217.6 -1.5 Apr-11 5.00 -1.8 -13.8 790 -1.3 1,090 2.8 1,950 -1.0 1,170 -7.1 3,759 6.8 -6.7 9.0 161.1 -6.5 210.2 -3.3 Mar-11 5.09 3.5 -6.4 800 3.9 1,060 1.0 1,970 7.1 1,260 0.0 3,520 0.6 -2.9 8.3 159.8 -5.8 207.3 -3.4 Three Month 4.86 Six Month 5.00 Average Changes for Twelve Month 2010 2009 4.73 4.92 -4.5 763 1,053 1,887 1,157 782 1,070 1,920 1,227 762 1,003 1,821 1,143 863 1.8 1,168 3.5 1,907 2.7 1,214 14.4 3,560 8.4 8.7 172.4 -0.2 219.5 1.2 5.15 5.2 848 -16.0 1,128 -15.2 1,857 -17.3 1,062 -2.8 3,283 -11.3 7.7 172.7 -12.4 216.8 -10.2 996 1,342 2,258 1,268 988 1,356 2,200 1,295 Five Year 5.43 Ten Year 5.81

Existing Home Sales (millions) (percent change) (year-on-year percent change) Northeast (thousands) (percent change) Midwest (thousands) (percent change) South (thousands) (percent change) West (thousands) (percent change) Inventory (thousands) (percent change) (year-on-year percent change) Months' Supply Median Sales Price ($000) (year-on-year percent change) Average Sales Price ($000) (year-on-year percent change)

3,723

3,593

3,735

3,593

2,935

9.2 171.6

8.7 164.8

9.6 169.1

8.0 196.2

6.2 188.5

221.3

213.2

217.4

242.0

232.8

Source: Bureau of the Census, Department of Commerce Via Haver Analytics. Data, graph & table courtesy of Insight Economics *Bloomberg 2011 HousingMatrix, Inc. http://www.HousingMatrix.com | All rights reserved. Reproduction and/or redistribution are expressly prohibited. Hot Sheet is a registered trademark of HousingMatrix, Inc. Information contained herein is based on sources we believe to be reliable, but accuracy is not guaranteed.