Existing-Home Sales Tank, New Sales Price Peak is Reached

Existing-home sales dropped for the third consecutive month during June, according to new data from the National Association of Realtors (NAR). Nonetheless, the median sales price for last month set a new all-time high.

 

Total existing-home sales dipped by 0.6 percent to a seasonally adjusted annual rate of 5.38 million in June from a downwardly revised 5.41 million in May. On an annualized basis, sales were down by 2.2 percent. However, the median existing-home price in June was a record-breaking $276,900, surpassing last month as the new all-time high and up 5.2 percent from the $262,300 level set in June 2017. This new price increase marks the 76th straight month of year-over-year gains.

 

Total housing inventory at the end of June climbed 4.3 percent to 1.95 million existing homes available for sale. This was 0.5 percent above the 1.94 million level from one year ago, and it also marked the first year-over-year increase since June 2015. Unsold inventory is at a 4.3-month supply at the current sales pace, while properties typically stayed on the market for 26 days in June. Fifty-eight percent of homes sold in June were on the market for less than a month.

 

“There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining,” said NAR Chief Economist Lawrence Yun. “The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast and in many cases, has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”

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