Existing-Home Sales, Home Prices, Inventories Rise in June
authors QR Staff | July 26, 2021
Existing-home sales increased in June, according to the National Association of Realtors (NAR). Three of the four major U.S. regions registered small month-over-month gains while the fourth region remained flat. All four areas notched double-digit year-over-year gains.
Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, grew 1.4 percent from May to a seasonally adjusted annual rate of 5.86 million in June. Sales climbed year-over-year, up 22.9 percent from a year ago (4.77 million in June 2020).
“Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales,” said Lawrence Yun, NAR’s chief economist. “Home sales continue to run at a pace above the rate seen before the pandemic.”
Total housing inventory at the end of June amounted to 1.25 million units, up 3.3 percent from May’s inventory and down 18.8 percent from one year ago (1.54 million). Unsold inventory sits at a 2.6-month supply at the current sales pace, modestly up from May’s 2.5-month supply but down from 3.9 months in June 2020.
The median existing-home price for all housing types in June was $363,300, up 23.4 percent from June 2020 ($294,400), as every region recorded price jumps. This marks 112 straight months of year-over-year gains.
“At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year,” Yun said. “Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022 as more listings and new construction become available.”
Properties typically remained on the market for 17 days in June, unchanged from May and down from 24 days in June 2020. Eighty-nine percent of homes sold in June 2021 were on the market for less than a month.
First-time buyers accounted for 31 percent of sales in June, also even with May but down from 35 percent in June 2020. NAR’s 2020 Profile of Home Buyers and Sellers—released in late 2020—revealed that the annual share of first-time buyers was 31 percent.