Steel Markets
Existing Home Sales Rebound in June
Written by Sandy Williams
July 22, 2020
Americans released from stay-at-home mandates were eager to purchase homes in June. Sales of existing homes rebounded from three months of decline by leaping 20.7 percent from May to a seasonally adjusted annual rate of 4.72 million in June.
“The sales recovery is strong as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown,” said Lawrence Yun, National Association of Realtors’ chief economist. “This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”
Existing home prices rose 3.5 percent year-over-year to a median of $295,300. June marked the 100th straight month of annual price gains, said NAR. Price increases were prevalent across all regions.
Total inventory for previously owned homes increased 1.3 percent from May to 1.57 million units, but was still 18.2 percent below last year levels. At the current sales rate, inventory sits at a 4.0 month supply, down from 4.8 months in May and 4.3 months in June 2019.
Low inventory had been a problem even before the pandemic. “Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply,” said Yun. “We are facing an acute inventory shortage especially at the lower price points. The inventory levels are shrinking and shrinking, which could create a bottleneck for further home sales later.”
Single-family home sales jumped 19.9 percent from May to June and rose 3.5 percent in price to a median of $298,600.
Existing condo and co-op sales soared 29.4 percent from May, increasing 2.3 percent to $262,700.
Homes are receiving multiple offers, said Yun, but sales in the urban area are less hot than in smaller towns or suburbs.“
All four regions saw increases in sales and year-over-year median prices in June.
Sales in the Northeast rose 4.3 percent, recording an annual rate of 490,000, a 27.9 percent decrease from a year ago. The median price in the Northeast was $332,900, up 3.6 percent from June 2019.
In the Midwest, sales rose 1.1 percent to an annual rate of 1,100,000 in June, down 13.4 percent from a year ago. The median price in the Midwest was $236,900, a 3.2 percent increase from June 2019.
Existing-home sales in the South jumped 26.0 percent to an annual rate of 2.18 million in June, down 4.0 percent from the same time one year ago. The median price in the South was $258,500, a 4.4 percent increase from a year ago.
The West reported the largest monthly increase with sales soaring 31.9 percent to an annual rate of 950,000 in June, a 13.6 percent decline from a year ago. The median price in the West was $432,600, up 5.4 percent from June 2019.
Sandy Williams
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