Existing-home sales posted a slight growth in June after dropping for four straight months, as supply recorded a modest improvement in the months prior.
- Total existing-home sales including single-family homes, townhomes, condominiums, and co-ops gained 1.4% month-on-month to 5.86 million in June, and 22.9% year-on-year from 4.77 million in June 2020.
- National Association of Realtors Chief Economist Lawrence Yun attributed the climb to the modest improvement in supply, as more housing starts and existing homeowners listed their homes in the recent months.
- Total housing inventory stood at 1.25 million units, up 3.3% month-on-month, and down 18.8% from 1.54 million in June 2020. Unsold inventory was equivalent to 2.6 months’ supply at the current sales pace, versus 2.5 months in May and 3.9 months in June 2020.
- The median existing-home price climbed for the 112th straight month to $363,300. Yun believes prices are in no danger of a decline due to tight conditions but the climb would slow down by the end of the year.
- Gains from both housing equity and the stock market have also driven growth in cash transactions, but record-high home prices are providing difficulties for first-time buyers who need mortgage financing.
Homes averaged 17 days on the market in June, unchanged from the previous month and lower than 24 days the same month in 2020. The majority of the homes were on the market for less than a month.
VNQ is down 0.77%, while SCHH is down 0.80%.
Source: National Association of Realtors