In June, existing-home sales reversed course from last month, sliding nearly 2% in total sales gains, according to the latest report from the National Association of Realtors.
Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – fell 1.7% from May to a seasonally adjusted rate of 5.27 million in June. Sales were 2.2% below June 2018’s rate.
NAR Chief Economist Lawrence Yun said the nation is in the midst of a housing shortage and much more inventory is needed.
“Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he said.
The median existing-home price for all housing types increased to an all-time high at $285,700, a gain of 4.3% from last June’s rate of $273,800. This marks the 88th straight month of year-over-year gains.
Total homes available for sale increased from May, rising from 1.91 million existing homes on the market to 1.93 million in June. This level remains the same as last year’s rate.
Unsold inventory was a 4.4-month supply at the current sales pace, up from last month’s and last year’s 4.3 month supply.
Properties stayed on the market an average of 27 days in June, crawling forward from 26 days in May and June 2018. The report states that 56% of homes stayed on the market for less than a month.
The report shows that the average commitment rate for a 30-year, conventional, fixed-rate mortgage retreated from 4.07% in May to 3.80% in June and the average commitment rate for all of 2018 was 4.54%, according to Freddie Mac.
First-time buyers comprised 35% of sales in June, up from May’s rate of 32% and from last June’s rate of 31%. NAR revealed that the annual share of first-time buyers held steady at 33%.
Single-family homes decreased from a seasonally adjusted annual rate of 4.76 million in May to 4.69 million in June, which is 1.7% below 4.77 million a year ago. The median existing single-family home price was $288,900 in June, increasing 4.5% from June 2018.
Existing condominium and co-op sales recorded a seasonally adjusted annual rate of 580,000 units in June, falling 3.3% from May, and still down 6.5% from a year ago. The median existing condo price was $260,100 in June, increasing 2.8% from 2018.
“Historically, these rates are incredibly attractive,” NAR President John Smaby said. “Securing and locking in on a mortgage now – given the current, favorable conditions – is a decision that will pay off for years to come.”
Existing-home sales in the Northeast rose 1.5% from last month’s rate to an annual rate of 680,000, which is a 4.2% annual decline. The median price in the Northeast increased 4.8% from June 2018 and came in at $321,200.
In the Midwest, existing-home sales gained 1.6% from the prior month at an annual rate of 1.25 million, which is a 1.6% decline from June 2018’s level. The median price in the Midwest was $230,400, increasing 6.7% from a year ago.
Southern existing-home sales fell 3.4% to an annual rate of 2.25 million in June. This is down 0.4% from last year. The median price in the South rose to $248,600, increasing 4.9% from June 2018.
Lastly, existing-home sales in the West fell 3.5% to an annual rate of 1.09 million in June, which is a 5.2% below June 2018. The median price in the West was $410,400, increasing 2.3% from this time last year.