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Existing-home sales declined in June but have stayed above year-ago levels for the past two years, while year-over-year median home prices have increased by double digits for the seventh straight month, according to the National Association of Realtors®.
Total existing-home sales decreased 1.2 percent to a seasonally adjusted annual rate of 5.08 million in June from a downwardly revised 5.14 million in May, but are 15.2 percent higher than the 4.41 million-unit level in June 2012.
NAR chief economist Lawrence Yun said there is enough momentum in the market, even with higher interest rates.
“Affordability conditions remain favorable in most of the country, and we’re still dealing with a large pent-up demand,” he said, “however, higher mortgage interest rates will bite into high-cost regions of California, Hawaii and the New York City metro area market.”
Total housing inventory at the end of June rose 1.9 percent to 2.19 million existing homes available for sale, which represents a 5.2-month supply at the current sales pace, up from 5.0 months in May. Listed inventory remains 7.6 percent below a year ago, when there was a 6.4-month supply.
“Inventory conditions will continue to broadly favor sellers and contribute to above-normal price growth,” Yun said.
The national median existing-home price for all housing types was $214,200 in June, up 13.5 percent from June 2012. This marks 16 consecutive months of year-over-year price increases, which last occurred from February 2005 to May 2006.
