Existing-home sales in June were at a seasonally adjusted annual rate of about 5.38 million, down 0.6% compared with a downwardly revised 5.41 million in May and down 2.2% from June 2017, according to the National Association of Realtors (NAR).
It was the third straight month that existing-home sales fell on a month-over-month basis.
Regionally, sales increased 5.9% in the Northeast, compared with May, and were up 0.8% in the West, but fell 2.2% in the South and 2.6% in the West.
The median existing-home price for all housing types (including condos and co-ops) in June was $276,900, a new all-time high and up 5.2% from $263,300 in June 2017.
It was the 76th straight month of year-over-year price gains, NAR reports.
Pushing the median home price to an all-time high in June was the ongoing inventory problem; builders are not boosting productivity enough to meet pent-up demand.
Lawrence Yun, chief economist for NAR, says the inventory problem is “the root cause” of falling home sales and that it “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,” Yun says in a statement. “This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”
Interestingly, inventory actually increased in June compared with May. As of the end of the month there were about 1.95 million existing-homes available for sale, an increase of 0.5% compared with June 2017. It was the first year-over-year increase since June 2015. That’s about a 4.3-month supply at the current sales pace.
“It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels,” Yun adds. “Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up.”