Existing-Home Sales Rose 2.0% in July
Washington, DC, August 23, 2021-Total existing-home sales grew 2.0% from June to a seasonally adjusted annual rate of 5.99 million in July, according to the National Association of Realtors (NAR). Sales inched up year-over-year, increasing 1.5% from a year ago (5.90 million in July 2020).
"We see inventory beginning to tick up, which will lessen the intensity of multiple offers," said Lawrence Yun, NAR's chief economist. "Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren't seeing as much growth because there are still too few starter homes available."
Total housing inventory at the end of July totaled 1.32 million units, up 7.3% from June's supply and down 12.0% from one year ago (1.50 million). Unsold inventory sits at a 2.6-month supply at the present sales pace, up slightly from the 2.5-month figure recorded in June but down from 3.1 months in July 2020.
The median existing-home price for all housing types in July was $359,900, up 17.8% from July 2020 ($305,600), as each region saw prices climb. This marks 113 straight months of year-over-year gains.
"Although we shouldn't expect to see home prices drop in the coming months, there is a chance that they will level off as inventory continues to gradually improve," said Yun.
"In the meantime, some prospective buyers who are priced out are raising the demand for rental homes and thereby pushing up the rental rates," he added.