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U.S. CITIES:
Downward Pressure on Home Prices Mounts
Luke Mullins
The inventory of unsold existing homes rose nearly 5 percent in June from a year earlier
The tally of unsold homes on the market increased in June, a signal that real estate prices may face additional downward pressure in the coming months.
The inventory of unsold existing homes rose to just under 4 million in June, a nearly 5 percent increase from a year earlier, the
Inventories grew as sales slipped 5 percent from the previous month, but remained 10 percent above year-earlier levels. But although the decline was less precipitous than economists had feared, it occurred even with the help of a key government stimulus.
The Obama administration offered tax credits worth up to
The tax credit's impact on the housing market should taper off before it expires at the end of September. Economists, however, expect sales to fall sharply before then. "The question is how much further will [home sales] drop before the payback period ends?"
[Check out Dirt-Cheap Mortgage Rates: Here for How Long?]
The rise in inventory and decline in sales didn't undercut home prices. The median existing home price in June increased 5 percent, to
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Downward Pressure on Home Prices Mounts
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