After decreasing for four consecutive months, existing-home sales increased 1.4% in June compared with May and were up 22.9% compared with May 2020 according to the National Association of Realtors (NAR).
The year over year comparison should be taken with a grain of salt, as the impact of the pandemic on the housing market was still peaking in early June 2020.
Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, were at a seasonally adjusted annual rate of 5.86 million, up from 4.77 million a year ago.
Regionally, and month-over-month, existing-home sales increased 2.8% in the Northeast, 3.1% in the Midwest, and 1.7% in the West. Existing-home sales were flat in the South compared with May.
“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,” says Lawrence Yun, chief economist for NAR, in a statement. “Home sales continue to run at a pace above the rate seen before the pandemic.”
Total housing inventory at the end of June amounted to 1.25 million units, up 3.3% compared with May but down down 18.8% from one year ago.
That’s about a 2.6-month supply at the current sales pace.
The median existing-home price for all housing types in June was $363,300, up 23.4% from June 2020, as every region recorded price jumps
“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,” Yun says. “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.”
Properties typically remained on the market for 17 days in June, unchanged from May and down from 24 days in June 2020.
Eighty-nine percent of homes sold in June 2021 were on the market for less than a month.
Photo: Phil Hearing