Existing-home sales fall again
Existing-home sales decreased for the third straight month in June, as declines in the South and West exceeded sales gains in the Northeast and Midwest, the National Association of Realtors (NAR) reported.
Total existing-home sales, including completed transactions of single-family homes, townhomes, condominiums and co-ops, decreased 0.6% to a seasonally adjusted annual rate of 5.38 million in June from a downwardly revised 5.41 million in May. With last month’s decline, sales are now 2.2% below a year ago.
Sales of existing single-family homes declined 0.6% to a seasonally adjusted annual rate of 4.76 million in June from 4.79 million in May and are 2.3% below the 4.87 million sales pace a year ago.
“There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining,” said Lawrence Yun, chief economist of the NAR. “The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast and in many cases, has multiple offers.
The dynamic is hiking-up home prices and pricing-out would-be buyers while slowing down sales, Yun explained.
The ongoing supply and demand imbalance helped push June’s median sales price to a new all-time high.
The median existing-home price for all housing types in June was $276,900, surpassing last month as the new all-time high and up 5.2% from the June 2017 median of $263,300. June’s price increase marks the 76th straight month of year-over-year gains, the NAR said.
The median existing single-family home price was $279,300 in June, up 5.2% from June 2017.
Total housing inventory at the end of June climbed 4.3% to 1.95 million existing homes available for sale and is 0.5% above a year ago and 1.94 million existing homes. This also marks the first year-over-year increase since June 2015. Unsold inventory is at a 4.3-month supply at the current sales pace.
The hottest metro areas in June were Midland, Texas; Columbus, Ohio; Boston-Cambridge-Newton, Mass.; Fort Wayne, Ind.; and Boise City, Idaho.
“Realtors throughout the country continue to stress that there’s considerable pent-up demand for buying a home among the millennial households in their market,” said Yun. “Unfortunately, they’re just not making meaningful ground, and continue to be held back by too few choices in their price range, and thereby missing out on homeownership and wealth gains.”
First-time buyers were 31 percent of sales in June, which is unchanged from last month and down from 32 percent year ago.
Regionally, June existing-home sales in the Northeast jumped 5.9% to an annual rate of 720,000 but are still 4% below a year ago. The median price in the Northeast was $305,900, which is up 3.3% from June 2017.
In the Midwest, existing-home sales edged up 0.8% to an annual rate of 1.27 million in June but are 3.1% below a year ago. The median price in the Midwest was $218,800, up 3.5% from a year ago.
Existing-home sales in the South decreased 2.2% to an annual rate of 2.25 million in June but are still 0.4% higher than a year ago. The median price in the South was $237,500, up 2.7% from a year ago.
Existing-home sales in the West declined 2.6% to an annual rate of 1.14 million in June and are now 5% below a year ago. The median price in the West was $417,400, up 10.2% from June 2017.
Total existing-home sales, including completed transactions of single-family homes, townhomes, condominiums and co-ops, decreased 0.6% to a seasonally adjusted annual rate of 5.38 million in June from a downwardly revised 5.41 million in May. With last month’s decline, sales are now 2.2% below a year ago.
Sales of existing single-family homes declined 0.6% to a seasonally adjusted annual rate of 4.76 million in June from 4.79 million in May and are 2.3% below the 4.87 million sales pace a year ago.
“There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining,” said Lawrence Yun, chief economist of the NAR. “The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast and in many cases, has multiple offers.
The dynamic is hiking-up home prices and pricing-out would-be buyers while slowing down sales, Yun explained.
The ongoing supply and demand imbalance helped push June’s median sales price to a new all-time high.
The median existing-home price for all housing types in June was $276,900, surpassing last month as the new all-time high and up 5.2% from the June 2017 median of $263,300. June’s price increase marks the 76th straight month of year-over-year gains, the NAR said.
The median existing single-family home price was $279,300 in June, up 5.2% from June 2017.
Total housing inventory at the end of June climbed 4.3% to 1.95 million existing homes available for sale and is 0.5% above a year ago and 1.94 million existing homes. This also marks the first year-over-year increase since June 2015. Unsold inventory is at a 4.3-month supply at the current sales pace.
The hottest metro areas in June were Midland, Texas; Columbus, Ohio; Boston-Cambridge-Newton, Mass.; Fort Wayne, Ind.; and Boise City, Idaho.
“Realtors throughout the country continue to stress that there’s considerable pent-up demand for buying a home among the millennial households in their market,” said Yun. “Unfortunately, they’re just not making meaningful ground, and continue to be held back by too few choices in their price range, and thereby missing out on homeownership and wealth gains.”
First-time buyers were 31 percent of sales in June, which is unchanged from last month and down from 32 percent year ago.
Regionally, June existing-home sales in the Northeast jumped 5.9% to an annual rate of 720,000 but are still 4% below a year ago. The median price in the Northeast was $305,900, which is up 3.3% from June 2017.
In the Midwest, existing-home sales edged up 0.8% to an annual rate of 1.27 million in June but are 3.1% below a year ago. The median price in the Midwest was $218,800, up 3.5% from a year ago.
Existing-home sales in the South decreased 2.2% to an annual rate of 2.25 million in June but are still 0.4% higher than a year ago. The median price in the South was $237,500, up 2.7% from a year ago.
Existing-home sales in the West declined 2.6% to an annual rate of 1.14 million in June and are now 5% below a year ago. The median price in the West was $417,400, up 10.2% from June 2017.