Existing home sales dropped in June by .08%, however home prices took a slight incline, according to the National Association of Realtors (NAR). The gains in the Midwest and the South offset the loss in the Northeast and West.

According to Lawrence Yun, Chief Economist of NAR, Home sales had been trending up without a tax stimulus, but a variety of issues are weighing on the market, including an unusual spike in contract cancellations in the past month. The underlying reason for elevated cancellations is unclear, but with problems including tight credit and low appraisals, 16 percent of NAR members report a sales contract was cancelled in June, up from 4 percent in May, which stands out in contrast with the pattern over the past year.

In a breakdown, 30% of the home sales came from first time buyers, which shows a 5% decline in a monthly comparison, 19% came from investors, which remained unchanged from the month before and the remaining 50% were repeat buyers, which showed jumped from 45% in May.