Existing-home sales sag in June
Existing-home sales declined 1.7% in June to a seasonally adjusted annual rate of 5.27 million in June, the National Association of Realtors reported.
Sales as a whole are down 2.2% from a year ago and a rate of 5.39 million in June 2018.
June’s decline follows to pervious months of gains.
Single-family home sales sat at a seasonally adjusted annual rate of 4.69 million in June, down from 4.76 million in May and down 1.7% from 4.77 million a year ago. The median existing single-family home price was $288,900 in June, up 4.5% from June 2018.
“Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country,” said Lawrence Yun, NAR’s chief economist.
Yun said the nation is facing a housing shortage and much more inventory is needed. “Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices."
The median existing-home price2 for all housing types in June reached an all-time high of $285,700, up 4.3% from June 2018 ($273,800). June’s price increase marks the 88th straight month of year-over-year gains.
Total housing inventory at the end of June increased to 1.93 million, up from 1.91 million existing-homes available for sale in May, but unchanged from the level of one year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, up from the 4.3 month supply recorded in both May and in June 2018.
Properties typically remained on the market for 27 days in June, up from 26 days in May and in June of 2018. Fifty-six percent of homes sold in June were on the market for less than a month.
Yun said other factors could be contributing to the low number of sales. “Either a strong pent-up demand will show in the upcoming months, or there is a lack of confidence that is keeping buyers from this major expenditure. It’s too soon to know how much of a pullback is related to the reduction in the homeowner tax incentive.”
First-time buyers were responsible for 35% of sales in June, up from 32% the month prior and up from the 31% recorded in June 2018. N
Looking ahead, Yun said that either pent-up demand will show in the upcoming months or consumer confidence is keeping buyers from purchasing a home.
“It’s too soon to know how much of a pullback is related to the reduction in the homeowner tax incentive,” Yun said.
June existing-home sales increased 1.5% in the Northeast to an annual rate of 680,000, but are down 4.2% from a year ago. The median price in the Northeast was $321,200, up 4.8% from June 2018.
In the Midwest, existing-home sales inched up 1.6% to an annual rate of 1.25 million, which is a 1.6% decline from June 2018. The median price in the Midwest was $230,400, a 6.7% jump up from a year ago.
Existing-home sales in the South fell 3.4% to an annual rate of 2.25 million in June, down 0.4% from a year ago. The median price in the South was $248,600, up 4.9% from one year ago.
Existing-home sales in the West fell 3.5% to an annual rate of 1.09 million in June, 5.2% below a year ago. The median price in the West was $410,400, up 2.3% from June 2018.
Existing condominium and co-op sales were at a seasonally adjusted annual rate of 580,000 units in June, down 3.3% from the prior month and down 6.5% from a year ago.
Sales as a whole are down 2.2% from a year ago and a rate of 5.39 million in June 2018.
June’s decline follows to pervious months of gains.
Single-family home sales sat at a seasonally adjusted annual rate of 4.69 million in June, down from 4.76 million in May and down 1.7% from 4.77 million a year ago. The median existing single-family home price was $288,900 in June, up 4.5% from June 2018.
“Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country,” said Lawrence Yun, NAR’s chief economist.
Yun said the nation is facing a housing shortage and much more inventory is needed. “Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices."
The median existing-home price2 for all housing types in June reached an all-time high of $285,700, up 4.3% from June 2018 ($273,800). June’s price increase marks the 88th straight month of year-over-year gains.
Total housing inventory at the end of June increased to 1.93 million, up from 1.91 million existing-homes available for sale in May, but unchanged from the level of one year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, up from the 4.3 month supply recorded in both May and in June 2018.
Properties typically remained on the market for 27 days in June, up from 26 days in May and in June of 2018. Fifty-six percent of homes sold in June were on the market for less than a month.
Yun said other factors could be contributing to the low number of sales. “Either a strong pent-up demand will show in the upcoming months, or there is a lack of confidence that is keeping buyers from this major expenditure. It’s too soon to know how much of a pullback is related to the reduction in the homeowner tax incentive.”
First-time buyers were responsible for 35% of sales in June, up from 32% the month prior and up from the 31% recorded in June 2018. N
Looking ahead, Yun said that either pent-up demand will show in the upcoming months or consumer confidence is keeping buyers from purchasing a home.
“It’s too soon to know how much of a pullback is related to the reduction in the homeowner tax incentive,” Yun said.
June existing-home sales increased 1.5% in the Northeast to an annual rate of 680,000, but are down 4.2% from a year ago. The median price in the Northeast was $321,200, up 4.8% from June 2018.
In the Midwest, existing-home sales inched up 1.6% to an annual rate of 1.25 million, which is a 1.6% decline from June 2018. The median price in the Midwest was $230,400, a 6.7% jump up from a year ago.
Existing-home sales in the South fell 3.4% to an annual rate of 2.25 million in June, down 0.4% from a year ago. The median price in the South was $248,600, up 4.9% from one year ago.
Existing-home sales in the West fell 3.5% to an annual rate of 1.09 million in June, 5.2% below a year ago. The median price in the West was $410,400, up 2.3% from June 2018.
Existing condominium and co-op sales were at a seasonally adjusted annual rate of 580,000 units in June, down 3.3% from the prior month and down 6.5% from a year ago.