Existing-home sales decreased 0.6 percent to a seasonally adjusted annual rate of 5.38 million in June, according to the National Association of Realtors (NAR). This followed a 0.4 percent decline in May. Sales are 2.2 percent below the June 2017 level.
“There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining,” said Lawrence Yun, NAR chief economist. “The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast and in many cases, has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”
The total housing inventory rose 4.3 percent to 1.95 million homes available for sale, 0.5 percent higher than last June, the first year-over-year increase since June 2015. The median existing home price was $276,900, up 5.2 percent from June 2017 ($263,300) and a new all-time high. This marks the 76th straight month of year-over-year gains.
Distressed sales were 3.0 percent of the total, unchanged from last month and down 4.0 percent from a year ago. Two percent of sales were foreclosures, and 1.0 percent were short sales.
Read the NAR release.
