Existing-home sales jump in June
Existing-home sales surged ahead in June to a record pace, according to the National Association of Realtors (NAR).
Total existing-home sales jumped 20.7% from the pace in May to a seasonally adjusted rate of 4.72 million. This includes completed transactions of single-family homes, townhomes, condos and co-ops.
Sales are down 11.3% from a pace of 5.32 million in June 2019, however.
“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, NAR chief economist. “This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”
Single-family home sales sat at a seasonally-adjusted annual rate of 4.28 million in June, up 19.9% from 3.57 million in May, and down 9.9% from one year ago. The median existing single-family home price was $298,600 in June, up 3.5% from June 2019.
The median existing-home price for all housing types in June was $295,300, up 3.5% from June
2019 ($285,400), as prices rose in every region. June’s national price increase marks 100 straight months of year-over-year gains.
Total housing inventory at the end of June totaled 1.57 million units, up 1.3% from May, but still
down 18.2% from one year ago (1.92 million). Unsold inventory sits at a 4.0-month supply at the current sales pace, down from both 4.8 months in May and from the 4.3-month figure recorded in June 2019.
“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply,” Yun said.
The economist also pointed to the trend of an urban exodus during turbulent times.
“Homebuyers considering a move to the suburbs is a growing possibility after a decade of urban downtown revival,” Yun said. “Greater work-from-home options and flexibility will likely remain beyond the virus and any forthcoming vaccine.”
Robert Dietz, chief economist of the National Association of Home Builders, acknowledged that urban flight fueling housing demand in last week's builder confidence report.
A day later, the Commerce Department reported that new home sales rose 17.3% in June as new single-family home sales increased 17.2%.
Here is how Existing-Home Sales and prices break down by region:
- Existing-home sales in the Northeast rose 4.3% in June, recording an annual rate of 490,000 but are down 27.9% from a year ago. The median price in the Northeast was $332,900, up 3.6% from June 2019.
- Existing-home sales increased 11.1% in the Midwest to an annual rate of 1,100,000 in June but are down 13.4% from a year ago. The median price in the Midwest was $236,900, a 3.2% increase from June 2019.
- Existing-home sales in the South jumped 26% to an annual rate of 2.18 million in June, down 4% from the same time one year ago. The median price in the South was $258,500, a 4.4% increase from a year ago.
- Existing-home sales in the West soared 31.9% to an annual rate of 950,000 in June, a 13.6% decline from last year. The median price in the West was $432,600, up 5.4% from June 2019.
The full Existing-Home Sales report for June 2020 is available here.