NAR: Existing Home Sales Decline in June

Median existing home price was at an all-time high of $285,700, a 4.13 percent jump from June 2018. Prices rose in all four regions with the highest gains in the Midwest and South, up 6.7 percent and 4.9 percent, respectively. Median home price was $321,200 in the Northeast, $230,400 in the Midwest, $248,600 in the South, and $410,400 in the West.

“Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country,” said Lawrence Yun, NAR’s chief economist. Yun says the nation is in the midst of a housing shortage and much more inventory is needed. “Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he said.

Inventory for the month increased to 1.93 million homes, up from 1.91 million for sale in May. At the current sales pace, unsold inventory is at a 4.4-month supply compared to 4.3 months in May and a year ago.

“Either a strong pent-up demand will show in the upcoming months or there is a lack of confidence that is keeping buyers from this major expenditure,” Yun added. “It’s too soon to know how much of a pullback is related to the reduction in the homeowner tax incentive.”

Single-family home sales declined 1.7 percent year-over-year to a SAAR of 4.96 million in June. Median price rose 4.5 percent to $288,900.

Existing condo and co-op sales fell 6.5 percent from last year to a SAAR of 580,000 units. Median condo price was up 2.8 percent from a year ago to $260,100 in June.