Existing-Home Sales Rose 20.7% in June
Washington, DC, July 22, 2020-Total existing-home sales jumped 20.7% from May to a seasonally-adjusted annual rate of 4.72 million in June, according to the National Association of Realtors. Sales overall, however, dipped year-over-year, down 11.3% from a year ago (5.32 million in June 2019).
“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’s chief economist. “This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”
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.
Yun explains that significantly low inventory was a problem even before the pandemic and says such circumstances can lead to inflated costs.
“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”
Yun’s concerns are underscored in NAR’s recently released 2020 Member Profile, in which Realtors point to low inventory as being one of the top hindrances for potential buyers.