TRAVERSE CITY -- Sales of previously occupied homes rose for the third month in a row in June both across the U.S. and in the Grand Traverse area, a signal that a rebound in the housing market could be under way.
The National Association of Realtors said Thursday that home sales rose 3.6 percent to a seasonally adjusted annual rate of 4.89 million last month, from a downwardly revised pace of 4.72 million in May. Home sales haven't risen for three straight months since early 2004, during the housing boom.
In the 5-county Grand Traverse region, 182 existing homes were sold in June, a 9.6 percent boost from May's totals. That also represented three consecutive months of higher sales as local industry officials said the long-slumping real estate market may finally be turning around.
"It's not anything dramatic, but that's not what we're looking for," said Kim Pontius, executive vice president of the Traverse Area Association of Realtors, a group that covers Grand Traverse, Leelanau, Benzie, Antrim and Kalkaska counties.
Pontius said he's encouraged by modest sales increases over the past few months as most experts are looking for a slower but steady rebound in the housing market.
Pontius said local real estate agents are reporting sales activity in some waterfront properties in Antrim and Kalkaska counties -- "streams and rivers-type stuff," he said -- and increased interest among potential buyers that could propel higher sales into July and August.
"There's been a lot of people up here looking," he said.
Prices, however, are expected to keep falling well into next year because of a backlog of foreclosures that have yet to come on to the market. The national median sales price was $181,800 in June, down 15 percent from year-ago levels but up slightly from $174,700 in May.
The average local sale price in June was $189,090, a 30 percent increase from May's average but still down 15.6 percent from a year ago. The median or mid-point home sale price in June was $139,370, up 21 percent from May.
The national sales figures for June represented the highest level of sales since last October and beat economists' expectations. Sales had been expected to rise to an annual pace of 4.84 million units, according to Thomson Reuters.
"The housing market is healing," said Lawrence Yun, the NAR's chief economist.
The inventory of unsold homes on the market fell to 3.8 million. That's a 9.4-month supply at the current sales pace and another important sign of a recovery. When the inventory level falls to about 7 months, prices should begin to stabilize, Yun said.
Sales of foreclosures and other distressed properties made up about a third of all transactions last month, down from nearly half earlier this year.
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