July home sales dropped 12.7% from the previous month, according to a RE/MAX survey of 53 cities released Thursday.
The real estate company blamed tightened lending standards, concern about the overall economy and bad appraisals that reportedly killed many transactions – a notion many in the appraisal business balked at. The National Association of Realtors pointed to similar predicaments when it reported existing home sales dropped 3.5% in July.
RE/MAX also said many lenders are already using the lower loan limits for government guaranteed or insured mortgages set to take effect in October.
Read it allStill, sales remained 13.1% above levels measured one year ago, and the median price dropped 4.6%, the smallest yearly decline in six months.