Despite gains in the Northeast, existing-home sales down nationally in June
Existing-home sales were up 2.0% in the Northeast, but that wasn’t enough to push the national average into the positive territory in June. In fact, existing-home sales were down 3.3% nationally from May, which had seen the first gain in closings since the winter, according to a report from the National Association of Realtors® (NAR).
In a reverse from May, the South and West were the two regions that saw a decline from the previous month.
- Northeast: Up 2.0%, an annual rate of 510,000, down 21.5% from June 2022
- Midwest: Even at 0.0% to an annual rate of 990,000, down 19.5% from June 2022
- South: Down 5.4% to an annual rate of 1,910,000, down 16.2% from June 2022
- West: Down 5.1% with an annual rate of 750,000, down 22.7% from June 2022
"The first half of the year was a downer for sure with sales lower by 23%," said NAR Chief Economist Lawrence Yun. "Fewer Americans were on the move despite the usual life-changing circumstances. The pent-up demand will surely be realized soon, especially if mortgage rates and inventory move favorably."
Year-over-year numbers were down, but for the first time since last summer, the decrease was under 20%.
Seasonally Adjusted Annual Rate
“Not enough homes for sale”
Total housing inventory held steady from May to June at 1.08 million units. This is a 13.6% decrease from a year ago and represents a 3.1-month supply of homes at the current sales pace.
"There are simply not enough homes for sale," Yun notes. "The market can easily absorb a doubling of inventory."
This lack of inventory is affecting home prices, with the median existing-home price in June rising above $400,000 for the first time in a year. This is only the third time the median has been above $400,000, currently sitting at $410,200. The other two times were May and June of last year.
The mortgage rate environment was very different a year ago, so it’s notable that home prices would rise so high when rates have been flirting with 7%. Usually, higher rates would serve to drive down home prices, but not when there are so few homes for sale. “Limited supply is still leading to multiple-offer situations, with one-third of homes getting sold above the list price in the latest month," Yun noted.
Median existing-home price
"Home sales fell but home prices have held firm in most parts of the country," Yun said. "The national median home price in June was slightly less than the record high of nearly $414,000 in June of last year.”
All-cash sales were up from May, accounting for 26% of transactions in June. And first-time buyers were responsible for 27% of sales in June, down from 28% in May and 30% in June of last year.
June’s existing-home sales report shows that it’s a difficult market out there, particularly for first-time homebuyers. That’s why it’s so important to work with a local loan-officer who’s an expert in what’s going on in your area and help you make the best decision when buying a home.
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