June Existing-Home Sales Up for First Time in Four Months

“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,” said Lawrence Yun, NAR’s chief economist. “Home sales continue to run at a pace above the rate seen before the pandemic.”

The median existing-home price rose 23.4% from June 2020 to a record high of $363,300. All regions posted double-digit increases in pricing. June marks the 112th straight month of year-over-year gains.

“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 continued. “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.”

Total housing inventory at the end of June rose 3.3% from May to 1.25 million units, down 18.8% from one year ago. Inventory is at a 2.6-month supply at the current sales pace. Properties averaged 17 days on the market in June, unchanged since April and down from 24 days a year ago. NAR reports that 89% of homes sold in June were on the market for less than a month. First-time buyers accounted for 31% of sales in June, unchanged with May but down from 35% in June 2020.