Existing Homes Sales Increase 1.4% in June

The National Association of Realtors® (NAR) reported that total existing home sales — completed transactions for single-family homes, townhomes, condominiums, and co-ops — increased 1.4% from May to a seasonally adjusted rate at 5.86 million homes in June. Year-over-year sales are up 22.9% (4.77 million June 2020). At the end of June, unsold inventory was at a 2.6-month supply at the current sales pace, up slightly from May’s rate of 2.5 months but down year-over-year from June 2020 rate of 3.9 months. The median existing-home price for all housing types in June was $363,300, up 23.4% from June 2020 ($294,400), the second highest level recorded since January 1999, and every region recorded price jumps. This marks 112 straight months of year-over-year gains.

In remarks prepared for the release of the June existing home sales report, Lawrence Yun, NAR’s chief economist said, “Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales. Home sales continue to run at a pace above the rate seen before the pandemic.” Yun went onto say, “At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year. Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022 as more listings and new construction become available.”