Supply hinders June existing-home sales
Existing-home sales slipped in June, the National Association of Realtors (NAR) reported this morning.
And a lack of homes on the market continues to be the main culprit behind sagging sales, according to industry experts.
Total existing-home sales fell 3.3% from May to a seasonally adjusted annual rate of 4.16 million in June.
Year-over-year, sales fell 18.9% down from 5.13 million in June 2022. The latest figures include completed transactions of single-family homes, townhomes, condominiums, and co-ops.
“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.”
Single-family home sales decreased to a seasonally adjusted annual rate of 3.72 million in June, down 3.4% from 3.85 million in May and 18.8% from the previous year.
Total housing inventory registered at the end of June was 1.08 million units, identical to May but down 13.6% from one year ago (1.25 million).
Unsold inventory sits at a 3.1-month supply at the current sales pace, up from 3 months in May and 2.9 months in June 2022. The lack of supply has pushed many home buyers toward purchasing new homes. The current supply has also provided a slight push to builder confidence.
“There are simply not enough homes for sale,” Yun added. “The market can easily absorb a doubling of inventory.”
The median existing-home price for all housing types in June was $410,200, the second-highest price of all time and down 0.9% from the record-high of $413,800 in June 2022. The median existing single-family home price was $416,000 in June, down 1.2% from June 2022.
The monthly median price surpassed $400,000 for the third time, joining June 2022 and May 2022 ($408,600). Prices rose in the Northeast and Midwest but waned in the South and West.
“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. Limited supply is still leading to multiple-offer situations, with one-third of homes getting sold above the list price in the latest month.”
Properties typically remained on the market for just 18 days in June, identical to May but up from 14 days in June 2022. About 76% of homes sold in June were on the market for less than a month.
The lack of homes for sale topped the list of concerns for realtors, according to a report released by the NAR.
Here’s the breakdown for existing-home sales on a regional basis:
- Existing-home sales in the Northeast grew 2% from May to an annual rate of 510,000 in June, down 21.5% from June 2022. The median price in the Northeast was $475,300, up 4.9% from the prior year.
- In the Midwest, existing-home sales were unchanged from one month ago at an annual rate of 990,000 in June, slumping 19.5% from one year ago. The median price in the Midwest was $311,800, up 2.1% from June 2022.
- Existing-home sales in the South faded 5.4% from May to an annual rate of 1.91 million in June, a decrease of 16.2% from the previous year. The median price in the South was $366,600, down 1.2% from June 2022.
- In the West, existing-home sales declined 5.1% from the previous month to an annual rate of 750,000 in June, down 22.7% from one year ago. The median price in the West was $606,500, down 3.4% from June 2022.
