Existing-home sales fall for fifth straight month

More signs of housing market woes surfaced as existing-home sales fell for the fight straight month.

Total existing-home sales declined 5.4% in June to a seasonally adjusted rate of 5.12 million, the National Association of Realtors (NAR) reported this morning. 

On a year-over-year basis, existing-home sales fell plunged 14.2% compared to a rate of 5.97 million in June 2021. Existing-home sales include completed transactions of single-family homes, townhomes, condos, and co-ops.

Single-family home sales declined to a seasonally adjusted annual rate of 4.57 million in June, down 4.8% from 4.8 million in May and down 12.8% from one year ago. 

But as sales dropped, existing-home prices continued to climb.

The median existing-home price for all housing types in June was $416,000, up 13.4% from June 2021 and a median price of $366,900. Prices increased in all four regions of the country with the latest hike marking 124 consecutive months of year-over-year increases. 

This is the longest streak on record, the NAR said.

The median existing single-family home price was $423,300 in June, up 13.3% from June 2021.

“Falling housing affordability continues to take a toll on potential home buyers,” said NAR Chief Economist Lawrence Yun. “Both mortgage rates and home prices have risen too sharply in a short span of time.”

Total housing inventory registered at the end of June was 1.260 million units, rising 9.6% from May’s total and 2.4% above the supply in May 2021.

Properties typically remained on the market for 14 days in June, down from 16 days in May and 17 days in June 2021. 

The NAR noted that the 14 days on market are the fewest since NAR began tracking it in May 2011. About 88% percent of homes sold in June 2022 were on the market for less than a month.

“Finally, there are more homes on the market,” Yun added. “Interestingly though, the record-low pace of days on market implies a fuzzier picture on home prices. Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”

The Realtor.com's Market Trends Report in June shows that the largest year-over-year median list price growth occurred in Miami (+40.1%), Orlando (+30.6%), and Nashville (+30.6%). 

Austin reported the highest increase in the share of homes that had their prices reduced compared to last year (+24.7 percentage points), followed by Phoenix (+22.2 percentage points) and Las Vegas (+20.1 percentage points).

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 550,000 units in June, down 9.8% from May and down 24.7% from one year ago. The median existing condo price was $354,900 in June, an annual increase of 11.5%.

Here’s how existing-home sales performed by region, according to the NAR:

• In the Northeast, at an annual rate of 670,000 in June, existing-home sales in were unchanged from May and down 11.8% from June 2021. The median price in the Northeast was $453,300, a 10.1% jump from one year ago.
• Existing-home sales in the Midwest fell 1.6% from the previous month to an annual rate of 1,230,000 in June, retreating 9.6% from June 2021. The median price in the Midwest was $306,900, a 10.2% increase from one year before.
• Existing-home sales in the South decreased 6.2% in June to an annual rate of 2,260,000, down 14.1% from the previous year. The median price in the South was $374,900, a 16.8% rise from one year ago. For the 10th consecutive month, the South recorded the highest pace of price appreciation in comparison to the other three regions, the NAR said.
• Existing-home sales in the West decreased 11.1% compared to the month before to an annual rate of 960,000 in June, down 21.3% from this time last year. The median price in the West was $624,000, an increase of 9.6% from June 2021.

This report follows previous news of the week that frames a rickety housing market picture as home builders and potential home buyers combat inflation and rising mortgage rates. 

Total housing starts for June fell 2% below a revised May estimate while permits slipped about 0.6% for the month.  Single-family housing starts were down 8.1% from May as single-family permits fell 8%. 

Additionally, the National Association of Home Builders reported that the NAHB/Wells Fargo Housing Market Index (HMI) dropped 12 points to a 55 reading. Measuring home builder confidence, the index hit its lowest reading since May 2020 and the largest single-month drop in the history of the HMI, except for a 42-point drop in April 2020.